Middle Class Dismissed

Minimum Wage Madness

"Switzerland is one of the few modern nations without a minimum wage law. In 2003, 'The Economist' magazine reported: 'Switzerland’s unemployment neared a five-year high of 3.9 percent in February.' In February of this year, Switzerland’s unemployment rate was 3.1 percent. A recent issue of 'The Economist' showed Switzerland’s unemployment rate as 2.1 percent. Most Americans today have never seen unemployment rates that low. However, there was a time when there was no federal minimum wage law in the United States. The last time was during the Coolidge administration, when the annual unemployment rate got as low as 1.8 percent." Continue reading →

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Here’s Why You Think Inflation Is Much Higher Than the Government Says

"According to the Bureau of Labor Statistics, producer prices for finished goods moved up just 1.4 percent for the 12 months ended in August, the smallest advance since a 0.5-percent rise in April 2013. According to the BLS release, over the past 12 months, at the producer level: Fresh and dry vegetables are up 47.1%. The price of chickens is up 6.2%. Residential gasoline is up 7.7%. Soaps and detergents are up 6.6%. Footwear is up 4.9%. Processed eggs are up 10.3%. Milk is up 6.7%. So if you don't eat, wear shoes or wash, there is hardly any price inflation." Continue reading →

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Georgia congressman complains: ‘I’m stuck here making $172,000 a year’

"A Georgia Republican congressman was caught complaining about what he described as a low salary in a closed-door meeting with fellow party members concerning the Affordable Care Act. During a discussion concerning a possible exemption for lawmakers and staff members from taking part in the state health exchanges mandated by the new law, Rep. Phil Gingrey (R-GA) reportedly lamented that aides can become lobbyists 'and make 500,000 a year. Meanwhile I’m stuck here making $172,000 a year.' USA Today reported that Gingrey’s net worth is estimated to be between $3 million and $7.6 million, while the median household income in Georgia is $49,736." Continue reading →

Continue ReadingGeorgia congressman complains: ‘I’m stuck here making $172,000 a year’

Surprise, Surprise: Consumers Do Not Believe the Fed’s Inflation Projections

"Caroline Baum of Bloomberg addresses the question of why consumers have ignored the Fed’s widely ballyhooed inflation target of 2 percent and the fact that CPI inflation has averaged only 1.5 percent over the past five years. Her answer is enlightening: 'Consumers either don’t listen, don’t care or derive their expectations from their own shopping cart. Food and gas comprise a big part of the household budget, and energy prices, at least, have been rising much faster than inflation. Just as consumers vote their pocketbook, they use their pocketbook to make judgments on where inflation is today and where prices are headed.'" Continue reading →

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Krugman: “The Employment Story is Highly Unimpressive”

"Even Paul Krugman gets it. He writes: 'The measured unemployment rate is down a lot — in fact, at 7.3 percent it’s almost exactly the same as it was in November 1982 1984, when Ronald Reagan won big on claims of restored prosperity. But most of the fall in unemployment reflects lower labor force participation rather than job growth. Even if we focus on prime-age workers, so as to net out demographic effects, the employment story is highly unimpressive.'" Continue reading →

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California Approves $10 Minimum Wage; What Will Become Automated Now?

"The next time you pump gas for yourself ask yourself what happened to the gas station attendants that used to pump gas and wash your windshields. The same thing when you can't find a department store clerk. It's the same thing with those damn automated phone answering services that most firms now use, it's just too expensive to hire human operators. And its the same with grocery store baggers from days of old. Thank you minimum wage. The damage of minimum wage isn't some theoretical, you have just gotten so use to it that you have forgotten what things were like, or you are too young to know the good old days." Continue reading →

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Dutch King tells citizens ‘to take responsibility’ as austerity implemented

"The king, who travelled through the streets of The Hague to address MPs and senators in an ornate horse-drawn golden carriage, said the transformation would be particularly noticeable in social security and long-term healthcare policies. The trade-dependent Dutch economy is in the fourth quarter of a recession and is struggling even as other European countries return to growth. The austerity measures will reduce Dutch households’ purchasing power by 0.25 percent in 2014. The budget announcement came with the government in free-fall in opinion polls. A poll said that the ruling Liberal-Labour coalition would lose around half its seats in parliament were elections held now." Continue reading →

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Hospital doctors join thousands protesting Greece’s austerity layoffs

"Greek doctors on Tuesday joined the latest wave of strikes to hit the debt-stricken country, with thousands of public sector workers protesting against government plans for lay-offs and redeployments. In Brussels, however, European Commission President Jose Manuel Barroso said during a visit by Greek Prime Minister Antonis Samaras that the unpopular policy of austerity was showing results in Greece and must be pursued to the end. Teachers from schools and universities, civil servants and lawyers are also on strike, in protest at reforms that Samaras’ centre-left coalition government is undertaking in return for international bailout funds." Continue reading →

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Pension Funds: The $4 Trillion Problem

"Using the lower, safer growth rate of 3.22%, the unfunded liability in Pennsylvania’s two pension plans grows to a combined $156 billion. This different form of measuring liabilities produces some truly scary results. In five states, State Budget Solutions calculates pension liabilities represent more than 40% of the entire state economy. In two states — Ohio and Mississippi — the pension costs are equal to more than half the state’s gross production. On a per-capita basis, it’s equally worrisome. There are five states where the unfunded pension liability would represent a per capita cost of more than $20,000, with Alaska leading the way, at more than $32,000 per person." Continue reading →

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