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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
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To: Mike Johnston who wrote (56120)3/17/2006 6:35:02 PM
From: GraceZ  Read Replies (2) of 110194
 
What it states is what it states, that their paychecks are not going up at the same rate as CPI inflation or even as fast as others in the labor force. This doesn't necessarily mean that inflation is higher than the official rate it could very well mean that their pay just hasn't risen at the same rate. A simple 1% lag in wages to the CPI could cause a lot of pain if it persists for say five years time.

Inflation does not have to be at a high level to cause pain among those whose pay remains stagnant.
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