Inflation, Wages, Cost of Living

 In 2021, when Joe Biden became President, his actions cause wholesale inflation to take place, and while gasoline prices have come down a little, most all other prices have not.

What this means for the general public is that their wages and/or salaries are just barely able to cover their monthly expenses.  Consequently, most workers start demanding or strike for high wages if a union is involved.  After several months of back-and-forth bullshit, a higher wage is agreed upon and everyone gets back to work, expecting they are now in a better financial position.

WRONG!!!

What these wages earners fail to realize is that, once your wages increase, then the worker's share of health insurance also increases.  If the wage increase is high enough, you are now in a higher tax bracket and more money is withheld from your check.

BUT, THAT AIN'T ALL...

Many but not all employers LAY OFF PEOPLE to compensate for the higher wage expenses they have to pay.

However, many employers, but not all, will keep their workforce at the current level and simply raise prices.

A rise in prices will cause the consumer to seek out SUBSTITUTES that are cheaper and almost just as good.

Once there is a decline in sales, the company will close down that division and lay off workers.

My example is based upon one company which is considered MICROECONOMICS, but when you look at a bunch of companies in a geographic area or MACROECONOMICS, then what you have is a general INCREASE IN THE COST OF LIVING.

Companies will not give up their profits because they are forced to pay high wages, especially if they are a publicly traded company and sell stock.  If they sell stock, then they answer to the STOCKHOLDERS and could care less about employees.

Most companies see the workers as a necessary expense that is easily replaced like XEROX paper or file folders.  The people that they really want to hold onto are:

Middle and Upper Management

• Before COVID, I was paying less that $2.00/gallon of gasoline.  Today, I pay $2.50 but it was over $3.
• Before COVID, I paid $8.99 for an everything omelet.  Today, I pay $14.99.
• Before COVID, I paid $11.95 for an 8oz Salmon with rice, broccoli, and a fully loaded baked potato.  Today, I pay $17.95.

These three examples are responsible for the COST OF LIVING in my area of TN.  Some wages have increased while others have not.  But there are several fine restaurants like Red Lobster, for instance, that have gone from a loaded parking lot to a parking lot three quarter's empty because they cannot find people to work for them.

Before the end of 2024, I suspect this Red Lobster will close it doors.

This type of action is happening all over this area, and it started with COVID, then inflation, then increased wages, then an increase in the cost of living.

Workers need more money...  I understand that...  but each time to get more money other negative things happen when they do, and life is never the same and the average worker NEVER GETS AHEAD.