Thursday, January 19, 2006

Squeezed Between a Rock and a Hard Place: 80% of America's Workers Fell Behind Inflation This Year

By Elaine Meinel Supkis

Nearly every worker below the $100,000 pay level lost ground this year, thanks to inflation as indexed by the government which doesn't cover the real losses since it grossly understates the rising costs of health, food and energy.

From the Baltimore Sun via AP:
The average American worker got squeezed in 2005 between the biggest rise in energy prices in 15 years and wages that failed to keep up with inflation.

As a result, hourly earnings after adjusting for inflation fell by 0.5 percent in December compared with what workers were earning in December 2004, the Labor Department reported yesterday.

Workers did see their wages rise last year. It was just that the Consumer Price Index rose at a faster pace - 3.4 percent for the 12 months ending in December, the department said.

The 0.5 percent drop in inflation-adjusted hourly earnings last year followed a 0.7 percent fall in 2004 for the 80 percent of the U.S. work force that is employed by the private sector in nonsupervisory jobs.
Well, just a few days ago, Uncle Scrooge Sam printed up another extra $60 billion for Wall Street making inflation worse and the need to print up an extra $250 billion this year to pay for Hurricanes Katrina and Wilma will set us irreversably upon the path of hyper inflation.

As I note over and over, workers are being forced to absorb all the pain of inflation, every drop of this poison will be purified by their blood and sufferings. And they intend to get blood from rocks, these creeps. They have every intention of cutting still more upper class taxes while imposing the tax burden on the poor and unlucky.

Gov. Pataki, of NY, is, for example, raising taxes on cigarrettes and beer to pay for more tax cuts in income taxes! This is typical for they know the barely sentient population that consumes this stuff and who pay a significant toll in their slender incomes to buy these addictive items, hardly vote and hardly complain even as the screws tighten on their miserable few pleasures.

Sin taxes are very popular with the ruling elite because they already pay a lot for their pleasures and they don't mind this since their happiness lies with megayachts and expensive cars and high class call girl/fashion models. So paying 10% more doesn't bother them in the least.

The GOP keeps trying to pop the VAT, value added tax, instead of taxing income and investments as if investments like property or stocks aren't "value added"! Anyway, they hope to do what the French aristocracy managed to do in 1783: cease paying taxes, drive the government into bankruptcy from meddling in civil wars in the New World and prolific personal spending on luxuries.

What happened next? Heh. I happen to know.
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