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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: David Langemak who wrote (59163)	5/12/1999 3:44:00 PM
From: Sid Turtlman	Respond to of 132070

David: The inflation figures are trying, in this case, to measure how much a company has to spend to fill a particular position. If its employees keep quitting to get better jobs, that has no impact on the numbers, as long as the company is not forced to start raising wage rates to attract replacements.

To: David Langemak who wrote (59163)	5/12/1999 4:01:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

David, There's another complication to these figures. Here's an example. If I have a job doing 'x' and they raise my title and my pay but I keep doing 'x' and take on no new responsibilities, it doesn't count as an increase in employment costs. I have a new title so supposedly I have moved up the ladder and that accounts for the higher salary. But a new title combined with a "standard" increase in pay and no new responsibilities is a common form of reward at large corporations. Some people respond to titles even though they are only getting a cost of living increase for doing the same job. Wayne

To: David Langemak who wrote (59163)	5/12/1999 5:37:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Dave, She is right. It is only when the wages for the same job go up that it is counted. They don't count it the way I count it. The govt. goes in and says, what does a gizmo screw tightener get paid. If that number doesn't go up, no inflation. If a new position is created, gizmo thread-engineering supervisor, with a higher salary, that is not inflation to the original position, but rather the base of the new position. Or, if some guy quits a civil service job where he is making $75,000 a year, and goes back to his old brokerage firm where he will be paid $10 million a year, that is also not wage inflation. Otherwise, Bobby Ruben wouldn't do it. <g>