Your raise has just been eaten by inflation
Market Watch has the inevitable story of inflation now completely wiping out any gains that consumer’s have seen in income. Inevitable, why? Because the interest rate cuts and massive influx of capital in to the system have set inflation loose. Gas prices are increasing geometrically, food prices are up, and there was even a heart-rending story of school lunch prices going up 25% in the bay area.
More on inflation from Market Watch:
Inflation erased all the gains in disposable personal income in April, while consumer spending was flat after adjusting for higher prices, the Commerce Department estimated Friday. Personal incomes, consumer spending and consumer prices all increased 0.2% in April, the government said in a report that suggests the economy weakened further in the second quarter of the year even as the first tax-rebate checks began arriving. Employee compensation dropped 0.1% in nominal terms, the first decline in a year.