[quote=The-Shoveler]I was getting 10-15% wage increases in the 1970’s
True a lot of that was performance/merit etc…
But house prices, cars ect.. were going up about that as well.
The lower you are on the ladder the more those cost of living increase mean. and in 1970, if house price increased, you got a higher Cost of living increase (not rent, the price of a home)[/quote]
I feel like that would be an awesome scenario for most home owners today who have a mortgage. A $2k mortgage today might seem high for your average wage earner but after 10 years of getting 10-15% raises, the same $2k mortgage would seem down right cheap.
[quote=harvey]And what percent of the workforce has their incomes tied solely to the govt. inflation numbers?
Answer: Not enough to make a difference.
Supply and demand still rules the day.
But maybe the 70s will make a comeback. Star Wars is back.[/quote]
Not entirely correct. Even with supply, companies fear turnover. The raise cycle is a major satisfaction issue and tying back to the voter anger issue, part of it is the big lie that has been being told to the middle three quintiles. Inflation is low, and we only have this tiny raise pool.
If the government was saying inflation was 3.5-4%!or more instead of virtually zero, I think corporate merit raise pools would be much larger, instead of typical raise pools in the 3-4% range, they’d be more in the 6-7% or higher if inflation was reported higher than say 4%.
It would give raises for get the staff stewing no leaving.
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