Expert Perspective by Grahall’s Robert Cirkiel
In the last paragraph of The Wall Street Journal reporter Brian Blackstone’s January 16, 2009 article titled “Inflation in 2008 Slowest Since 1954″ he refers to a “Labor Department report [that] said average weekly earning of U.S. workers, adjusted for inflation, climbed 0.6% in December…” Higher wages? Are workers getting raises these days? I thought pay was going the way of freezes, furloughs etc. But my impression is anecdotal.
As for the impact of the Consumer Price Index that Blackstone addressed in this article, I doubt that anyone got a raise as result of gas price increases. Good thing too – there would have been no “pain at the pump” and therefore prices would not have come down. My point is that the best way to combat higher prices is to not give people enough money to pay them. Not a good argument for CPI linked pay increases! Email Robert Cirkiel at firstname.lastname@example.org