Bush says the $3.70 a day he thinks wages rose by this year will bring a family of 4 holiday cheer
Edited on Sat Dec-16-06 01:55 PM by bigtree
December 16, 2006
Bush's Radio Address
Bush: "America's working families also received another bit of holiday cheer this week: We learned that real hourly wages rose by 2.3 percent over the past year. That may not sound like a lot, but for the typical family of four with both parents working, it means an extra $1,350 for this year."
There now are three major CPI measures published by the BLS, CPI for All Urban Consumers (CPI-U), CPI for Urban Wage Earners and Clerical Workers (CPI-W) and the Chained CPI-U (C-CPI-U). The CPI-U is the popularly followed inflation measure reported in the financial media. It was introduced in 1978 as a more-broadly-based version of the then existing CPI, which was renamed CPI-W. The CPI-W is used in calculating Social Security benefits. These two series tend to move together and are based on frequent price sampling, which is supposed to yield something close to an average monthly price measure by component.
The C-CPI-U was introduced during the second Bush Administration as an alternate CPI measure. Unlike the theoretical approximation of geometric weighting to a variable, substitution-prone market basket, the C-CPI-U is a direct measure of the substitution effect. The difference in reporting is that August 2006 year-to-year inflation rates for the CPI-U and the C-CPI-U were 3.8% and 3.4%, respectively. Hence current inflation still has a 0.4% notch to be taken out of it through methodological manipulation. The C-CPI-U would not have been introduced unless there were plans to replace the current series, eventually.
Traditional inflation rates can be estimated by adding 7.0% to the CPI-U annual growth rate (3.8% +7.0% = 10.8% as of August 2006) or by adding 7.4% to the C-CPI-U rate (3.4% + 7.4% = 10.8% as of August 2006). Graphs of alternate CPI measures can be found as follows. The CPI adjusted solely for the impact of the shift to geometric weighting is shown in the graph on the home page of www.shadowstats.com . The CPI adjusted for both the geometric weighting and earlier methodological changes is shown on the Alternate Data page, which is available as a tab at the top of the home page.
to get us to that low paying job! (Or dropped at the grocery store for food stuffs that increased in price as well). But, according to him, Happy Days Are Here Again should be playing in the background at every holiday family gathering .... that is, if we can afford to travel to get together at all.
Once you figure in taxes and inflation, these folks can almost certainly afford a round Grande Eggnog Lattes for themselves and their kids. Maybe even Venti if they watch their pennies during the year. That's 80 oz of holiday cheer right there!
If it's not then it's worth considerably less. Throw in higher energy costs, medical costs........ and that family of four is probably in a hole they'll never be able to dig themselves out of. Of course, they could each get another job or two, that's "uniquely American" according to the chimp in chief.
On the other hand, the fact that he's talking about "wages" and "working families" may imply that it isn't, in which case it is good news.
We've had over 6 years of experience deciphering his doublespeak, and usually when he says things like these, he uses 'working families' and 'wages' to make us think that it's only the lower classes he's talking about, but in reality, I bet he's taking these figures from statistics that include every darn CEO salary there is. In other words, the top 10% wage earners got a 10% gain, while the bottom 90% actually lost, but because the top 10% earn so incredibly much more than the bottom 90%, the numbers actually end up positive when talking about the average.
8. Wow! $1,350 a YEAR! That is fabulous - for a third world economy.
That is $338 per year per person in a family of four. Lets see - that is ALMOST a dollar a day! Amazing!
Now I can buy an extra candy bar each day for each family member this winter! Those extra calories will be needed because I need to turn down the thermostat due to the ridiculous increase in the cost of heating my home.
Speaking of my home - my property taxes have nearly doubled in the past couple of years. That in itself more than wipes out the $1,350 but I still think those extra calories are worth it.
Granted, it's not as big at the moment as the SD Senator's recovery (thinking positive!), or the censorship of the CIA op-ed piece, but I think that the slow strangulation of the American working and middle classes is the biggest sstory of our lifetimes. The Chimperor flaunting these numbers in our faces during a time of year when many families are struggling to pay for fuel and heating, buy gifts for their children (who are awash in consumerism and just trying to be like "everyone else"), and maybe keep from running even further into credit card debt, is nauseating.
17. He never mentions that while he's trying to make us peasants feel
good about the crumbs that his mis Administration throws out. If he were honest he would tell his loyal listeners, many of whom are in the same leaky boat financially speaking right along with the rest of us, how much his base, the haves and have more have gorged themselves on.
Ours haven't. We're still taking the same amount we were 2 years ago but this year my husband's health insurance is doubling and our homeowner's insurance is coming close to doubling so we'll be losing about $600 a month.
20. I get a cost of living raise every year with SS, anywhere from $15
to $30, however my health care premium raises seem to be one and a half times the cost of living raise every year, so I actually end up with less. Also, if you haven't noticed that your grocery bill has increased, I assume because of the price of gas, you aren't paying attention. And oh yes, about those gas bills?
"We learned that real hourly wages rose by 2.3 percent over the past year. That may not sound like a lot, but for the typical family of four with both parents working, it means an extra $1,350 for this year. At the same time, our growing economy continues to create jobs and that has brought unemployment down to just 4.5 percent. These numbers give all Americans a reason to celebrate: More people are working than ever before, and paychecks are going further than they used to."
Breaking it down: Hourly wages rose less than inflation. Unemployment is down because people been out of work so long they are no longer eligible for unemployment benefits and aren't counted. Paychecks are going further than they used to...being stretched further...since insurance costs more and pays out less you get to pay MORE for your healthcare, paychecks now going for more FOOD, paychecks are being stretched more, true.
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