Americas' Inflation

[w¡n9Nµ7 §£@¥€r 123]

Life here is pretty damn good. But then again, my frame of reference is my lower-middle-class extended family in India. I wouldn't give this up to go back to that for anything in the world.

[Scott & Lai 12]

a person with a family on a Mc Wage should be able to afford transportation to work, have some affordable housing and have access to healthy foods.

If infant diapers go to a dollar each, most people won't stop having babies, (many) parents will just look to violence.

There was a time when people didn't consider disposable diapers to be a necessity; they used cloth diapers, and just kept cleaning them.

And minimum wage isn't intended for the head of a household to support their family.

[KEN's ROSE 0]

In reality there are several families living on $5.75hr. and many of those possibly single parents have to own cars too. (thats how they get to work, babysitter etc)

I have operated a store for the past 11 years here in Chicago, and have noticed the gradual increase in violence all over, but mainly in depressed areas like where my business is. I say that most of the crime and violence is due to those who cant afford to support their addictions. So inflated prices across the board will lead to more purse snatchings, home and business burgleries, bank heists, and fraud.

[dalegg 143]

In reality there are several families living on $5.75hr. and many of those possibly single parents have to own cars too. (thats how they get to work, babysitter etc)

I have operated a store for the past 11 years here in Chicago, and have noticed the gradual increase in violence all over, but mainly in depressed areas like where my business is. I say that most of the crime and violence is due to those who cant afford to support their addictions. So inflated prices across the board will lead to more purse snatchings, home and business burgleries, bank heists, and fraud.

So, is the point of this thread to promote the "Living Wage"?

[Heracles 417]

The United States made its name for making things of necessity available for all its people. Thats one what made the US so great. And cheap prices + higher wages made it all possible. Look at the BMI of this country (an infomal look at a nations economic distribution based on how long it takes for a minimum wage worker to afford to buy a #1 @ McDonalds + tax) The US is not at the top nowadays, and is likely going to slip from the top ten soon. (But then again if the US goes downhill then so will the world.)

Beggars outside of stores here in US do it not to feed themselves and their family, they do it because they have an addiction either smoking, drinking or just likes to beg for money and attention. Theres more food in the US than we can eat! and lots of it is for free!

True a worker on a Mc Wage can't afford a new CL-550, pay for a deluxe condo downtown, and eat at Red-Lobster every night, but a person with a family on a Mc Wage should be able to afford transportation to work, have some affordable housing and have access to healthy foods.

If infant diapers go to a dollar each, most people won't stop having babies, (many) parents will just look to violence.

I do not know about going downhill as the US economy is struggling while the rest of the world is on a bull run.

Cheap things are great but unfortunately that does not correlate to a good standard of living or improved economic prosperity. Especially in the US's case as most of these goods are produced overseas and imported, which further increase the trade deficit. I would rather see sales taxes increased to slow down the importation of these cheap goods.

[Emancipation 2]

I have been asking hubby how people live here in CT on minimum wage.. Groceries are for the most part as high if not higher to what I was used to paying in Canada.. Gas is cheaper, but rent is WAAAAAY higher. I know we'd be homeless if we had to live on minimum wage.

I look around at people and I think.. what if you were hospitalized and had a big bill.. how would you make ends meet? How would I make ends meet? (and I make more $$ here in the US now than in Canada).

[Charuhans 0]

Well people, the low prices in the US (low inflation) even when the economy was booming (+ve economic growth, upbeat stock market, red hot housing market) was because the whole basket of consumer goods was imported from countries like India and China. Low wages in those countries enabled them to sell goods at very attractive prices (dirt cheap). Now, with a decade of double digit economic growth in China, followed by India, is pushing input prices (mainly labor) up into a new level. Consequence : they can't price their goods at the same old prices. As those economics grow further, its going to be more and more difficult for them to maintain an across the board price competativeness.

Result : Consumer good prices are going to be on the rise in the US. Balancing Effect : Taken away the low labor cost advantage, its not going to be very profitable to import. Many of the US businesses which closed shop because they couldn't compete with the low labor cost will have an opportunity to get back in business. More jobs created in the US ... increased demand for labor and thats going to put some upward pressure on wages (even on jobs with the minimum wage) ....

There are of course 2 spokes which can get in the wheel ... The Federal Reserve fearing inflation, increasing interest rates prematurely, making it expensive to borrow and throwing a wet blanket on economic activity ... undocumented workers filling in the gap between demand and supply of labor at relatively low wages, thus taking away any upward pressure that might build on wages!!

Charuhans

[Heracles 417]

In reality there are several families living on $5.75hr. and many of those possibly single parents have to own cars too. (thats how they get to work, babysitter etc)

I have operated a store for the past 11 years here in Chicago, and have noticed the gradual increase in violence all over, but mainly in depressed areas like where my business is. I say that most of the crime and violence is due to those who cant afford to support their addictions. So inflated prices across the board will lead to more purse snatchings, home and business burgleries, bank heists, and fraud.

The countries which have the highest crime rates tend to have the lowest wages and lowest priced goods. I would rather pay x more for goods than have to worry about being robbed.

Decent salaries are also better for the overall economy. Something many people seem to not comprehend. Think about which of the following is better for the economy. The current state of living where so many Americans are living in slums, ghettos and gang infested communities or a nice neighborhood where people feel safe, earn a decent salary and get to shop and actually be part of the economy. This environment did exist in America prior to the late 60's; hence the great overall economic growth back then. No Ghettos or slums or completely run down cities back then.

I would rather pay an extra 5% sales tax and $1 extra for my eggs and juice than have to drive by another US city and ask myself whether I am in Afghanistan..

[mawilson 2,133]

I do not know about going downhill as the US economy is struggling while the rest of the world is on a bull run.

What gives you that impression?

[KEN's ROSE 0]

Well, I don't know about whats going on Japan; since it has been rather quiet lately. But there their housing market melt down has led to reductions in housing prices across the board. Japan has seen earlier on about what the US is facing, e.g. outsourcing of employment to China, and even cheaper goods from other countries. Their government also is very taxing coupled with low interest rates, and enforcing penalties on about anything (i guess in an effort to keep the government afloat)

I learned back in the 80's that the achellies heel of the US and the world for that matter was (OIL and its prices) The saying' if you got it a truck brought it' also applies to if 'gas goes up then you pay more for everything' is true. But as always there are those many people who aren't in the position to benefit.

In the 1950's and 60's the US was like a diamond in the world of economy, true there were fears of war and nukes, but lots of innovation started then such as interstate hwy, and improvements in overseas shipping. Today has seen a step back because of increased boarder security, which adds to cost and time.

It just seem that easy times are behind us and like higher gas prices today, from now on that'll be just the norm.