Andy Posner: Nominal Wage Increases Aren't Helping Rising Costs

Automatic TRANSCRIPT

But on the other front there's not much else Andy going in a great direction here We've got the producer price index exploding you know producers and wholesalers paying more for inputs before they produce outputs You've got labor for labor force participation going down And most devastating of all something you've commented on I follow you on social media Is the decreasing power of your earnings Andy you might be getting a nominal raise in your paycheck but your paycheck ain't going as far anymore as it was in the Trump administration No not at all A simple way to think about it is if inflation is 8% so if you had a $100 there it's worth $8 less you're now down to $92 but you got a 5% raise so you go up to $97 Well you're still $3 short So for Biden to be out there talking about how their wages are increasing What he's talking about is nominal wages which is the number on your paycheck which everybody loves to see that get bigger But the problem is if you go to the gas station or you go to the grocery store all of a sudden you realize that even though the number was bigger you're able to buy less And that's really what we're experiencing in America right now And by the way you mentioned the unemployment rate going down Which is good But the unemployment rate will go down automatically if labor participation decreases Nobody has to get shot If there's fewer people in the labor force unemployment will go down We're still not even where we were on the number of jobs We're not where we're going into the pandemic There are still fewer jobs than when the pandemic started So this administration is truly a failure in every respect economically And just about every other respect but we're talking about the economy so limited to that

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