No Gains in Income
Mish has a post about how in the last decade incomes have not gone up and it is the first time this has happened in the 4 decades this information has been tracked.
Here is some of my thoughts on it...
First, it says it is corrected for "inflation." In the context that they use the word inflation they mean corrected for price increases. I say bs on how it has been corrected. The consumer price index has been so manipulated the true increases to household costs have been understated for years. It is pretty bad that they can't show household income increasing using data that has been grossly manipulated to understate increased costs.
I am looking at the tables and I don't believe for a second that poverty rates have gone down. It seems to me that I constantly read about increased demand on food banks, increased homelessness and other indicators of poverty. Some of the recent stories about homeless children say that those figures have doubled in the last few years. I remember when I driving north to my job for the first time and there was a story about food banks and I remember this woman talking about how important the food bank was to her not just to help feed her kids, but for personal items like tampons. She was a single mom that worked full time at a job that paid $10-11/hour.
I always kept a budget and I've always had a good memory for numbers and I know making ends meet at a low paying job when I was young wasn't that hard, but now I shake my head and I don't know how low wage earners do it. Well, actually, there is a lot of evidence that they aren't making ends meet.
I get so sick and tired of media reports suggesting the baby boomers have been hardest hit by these problems because they are going to retire do not have time to recover.
How is that harder then a person who probably doesn't have the opportunity to ever own a home and have owning a home as a way to reduced living costs in retirement? Or finding a "good" job in the first place?
How is that harder just paying the cost of education takes a young person into their 30s these days?
I saw people paying for homes outright by the age that today's young people are really just getting started. They don't have the job benefits the boomer generation had. They have not had and are unlikely to enjoy increasing income as the costs of supporting a family increases. Indeed, they do not have anything even remotely close to the job stability that boomers had.
Governments also did not have the levels of debt, and that debt will have to start to be paid back so although I can't say this is a truth now, it is likely they will also pay higher taxes their whole lives, especially with the boomer's government pension expectations.
I can not understand how anyone can say that younger people have a chance to make it up when the opportunity for that "chance" is slim and uncertain and the starting burden is so high... well, where exactly is this "chance" coming from?