American's living Paycheck to Paycheck

[SilverEagle]

Just like point of sale markup is not the same as profit, living paycheck to paycheck is not the same as poverty.

Nobody here is saying that. What we are saying is that it's harder to build up savings vs the past and it's getting harder and harder every year. The whole point of the article is that Americans 20 years ago lived good and were as a whole able to save money. Now 18 years of stagnant wages and constant increase in living costs is putting a giant squeeze on the middle class. WTF don't you get Okee?

[Smitty-48]

The whole point of the article is that Americans 20 years ago lived good and were as a whole able to save money.

Nostalgia for an America that never was. ^^^

[jediuser598]

Sure it screws us little guys who don't invest and just work, but it's the oil for the economic engine, at least that's how I understand it. (I'm not an economist so I could be wrong).

You are wrong, inflation doesn't screw the little guy who doesn't invest, inflation is his friend, inflation means he never has to pay the piper, inflation screws the guys with the money not the guys without, as if you don't have any money, what do you care if it is devalued?

Hmm.

So you're saying if instead of saving my money I just buy stuff with it, and don't hold large sums of money in the bank, then what I have isn't devaluing because I'm spending it as I get it, here's the thing though, my wage isn't going up to match, so things are getting more and more expensive to me even though I make the same. Sure I could buy things that go up with the inflation, like perhaps property, but besides that what can I buy that keeps pace with inflation?

[jediuser598]

Lolberg alert, everybody get out your umbrellas, the Paulites are about to spooge all over the thread.

Shhhh, let them come. Rifles at the ready.

We're setting up an ambush.

[SilverEagle]

Sure it screws us little guys who don't invest and just work, but it's the oil for the economic engine, at least that's how I understand it. (I'm not an economist so I could be wrong).

You are wrong, inflation doesn't screw the little guy who doesn't invest, inflation is his friend, inflation means he never has to pay the piper, inflation screws the guys with the money not the guys without, as if you don't have any money, what do you care if it is devalued?

When wages are stagnant the little guy gets rammed up the bunghole with zero lube and in some cases the ramming device is coated with 100 grit sandpaper.

[ssu]

Well, there's not much inflation now.

Perhaps the solution has been to give the money to the rich and put it to uphold the whole shaky financial system that we have in order to gives us higher stock prices and financial asset prices. That money don't make it to the real economy. But surely can be devastating if it all comes down (again).

[ssu]

Lolberg alert, everybody get out your umbrellas, the Paulites are about to spooge all over the thread.

Shhhh, let them come. Rifles at the ready.

It's a trap.

That made me laugh, really.

(Yes, perhaps this issue has been dwelled upon...)

[SilverEagle]

Well, there's not much inflation now. No but stagnant wages magnifies it's effect

. But surely can be devastating if it all comes down (again). It's not if, it's when.

[Smitty-48]

Sure it screws us little guys who don't invest and just work, but it's the oil for the economic engine, at least that's how I understand it. (I'm not an economist so I could be wrong).

You are wrong, inflation doesn't screw the little guy who doesn't invest, inflation is his friend, inflation means he never has to pay the piper, inflation screws the guys with the money not the guys without, as if you don't have any money, what do you care if it is devalued?

Hmm.

So you're saying if instead of saving my money I just buy stuff with it, and don't hold large sums of money in the bank, then what I have isn't devaluing because I'm spending it as I get it, here's the thing though, my wage isn't going up to match, so things are getting more and more expensive to me even though I make the same. Sure I could buy things that go up with the inflation, like perhaps property, but besides that what can I buy that keeps pace with inflation?

You wage isn't going up because inflation isn't going up, the key driver of wage increases being inflation, but here's the thing, inflationary wage increases don't actually make you better off, because you're getting more money which is worth comensurately less in terms of your purchasing power.

Your wage is just a number, it's all relative.

[Smitty-48]

Sure it screws us little guys who don't invest and just work, but it's the oil for the economic engine, at least that's how I understand it. (I'm not an economist so I could be wrong).

You are wrong, inflation doesn't screw the little guy who doesn't invest, inflation is his friend, inflation means he never has to pay the piper, inflation screws the guys with the money not the guys without, as if you don't have any money, what do you care if it is devalued?

When wages are stagnant the little guy gets rammed up the bunghole with zero lube and in some cases the ramming device is coated with 100 grit sandpaper.

Not at 1.7% core inflation, might have been the case in 1975 when core inflation was 14%, but is not the case now, in 2017.