Locator: 50825NETWORTH.
Locator: 50825WAGEINFLATION.
My heart truly goes out to those Americans who are have trouble making ends meet. I feel very strongly that more efficient use of our HHS dollars would go a long way to improving their situation but most of us have no input. And when those politicians try, they are thwarted at every turn.
From earlier this week.
Sorry about the glare.
Wages have remained absolutely flat for quite some time now but did you note the more impressive data point? Wage growth / lack of growth has been in a downward trend since Covid! And it's not subtle.
A better look, link here:
The best graph would be one comparing wage growth for hourly workers that work in jobs that illegal immigrants can and do take / hold vs salaried workers in high-paying white collar jobs that go to US college graduates.
Even CNBC doesn't dare do that analysis. For the majority of healthcare workers who are at the lowest pay rate, those services can be provided by illegal immigrants. Let that sink in. Farm laborers? Ditto. Landscapers? Ditto. And the list goes on.
And, oh, by the way, although they don't pay into social security, they also don't get social security benefits.
Someone making $40,000 last year saw their annual earnings jump to $41,400.
Gasoline (feel free to use your own numbers and fact check):
- 12,000 miles annually;
- a beater or old pickup truck: 18 mpg
- at $2.89 / gallon: $1,926 in gasoline in 2025
- at $4.89 / gallon: $3,260 in gasoline in 2026
- delta: $1,334 offset by $1,400 jump in earnings!
The senior:
- gasoline:
- 2025: $445 for gasoline for the year
- 2026: $564 for gasoline for the year
- social security, high social security recipient (I don't take my social security):
- 2025: $54,000 (fact check, which I did)
- 2026: with 2.8% COLA -- $55,512
- delta: $1,512
By the way, for someone earning $50,000 what does a 6% wage increase y/y look like compared to a 3% increase:
- 6%: $3,000; divided by 12 months; divided by four week < $65 / week
- 3%: $1,500; divided by 12 months; divided by four week ~ $30 / week.
Meanwhile, inflation has just turned "north."
From a "senior's" perspective, from someone who is older than 75 years of age (this goes back to my blog on "net worth" some weeks ago):
- the data without comments: link here.
- the long, long discussion from a senior's viewpoint, well worth reading: link here.
From a senior's perspective what does this graph tell me?
- a little bit of inflation is not going to hurt me; it will actually drive help me in some arenas, including investing; and,
- our income, all things being equal, will increase this year when higher inflation will drive a higher COLA for pensions and social security.
Our expenditures (not costs) will likely remain fairly flat.
Quick example:
- the cost of gasoline will go up significantly;
- I will drive less; a lot less.
