Tuition has consistently increased faster than inflation and household income, to the point that it is now four times more expensive to attend college than it was a generation ago.
FORBES: After Housing And The Stock Market, Is Higher Education The Next Bubble To Burst?
While earnings for large corporations surge, household income, when adjusted for inflation, has been basically flat for 35 years.
FORBES: Too Big To Fail Banks Get Bigger, American Dream Turns Nightmare
However, per the U.S. census, inflation-adjusted median household income has fallen for more than a decade, a stunning national failure.
FORBES: The U.S. Needs To Win The Battle To Limit Government Now
Now as inflation percolates and affects the household budgets of Americans, the Fed has a delicate balancing act to walk.
Last winter, household bills soared as suppliers brought in inflation busting tariff increases in the face of surging wholesale prices.
With the economy flirting with recession and household incomes still falling in relation to inflation, the government just cannot afford to price businesses and households off the road.
Today, unemployment is 5%, while median household income is double its 1975 level even in inflation-adjusted dollars, according to Census Bureau figures.
It suggests that higher that higher inflation and slow wage growth are squeezing household incomes and that this is being felt in the UK's shops.
Waning inflation seems to be contributing to improving household spirits.
Many ongoing costs in a household increase each year at a rate that far outpaces inflation.
What you may have worked out is that the boost to household income from tax credits and benefits rising faster than inflation has now gone into hard, eyewatering reverse.
In its August Inflation Report, the Bank of England said that household balance sheets had been weakened by the rapid growth in borrowing and the decline in equity markets.
Mr Krantz, of Manchester Coalition Against Cuts, said the plans meant working people "face further cuts to their household budgets as pay and benefits have been set at below inflation levels".
BBC: 'Anti-cuts' protestors march in Manchester and Liverpool
According to ESPlannerBASIC, such a household, if it invests safely, earns only 2% after inflation (roughly the amount long-term Treasury Inflation Protected Securities are now paying), and lives, let's assume, in Maryland, should target to spend 41%, not 85%, of its pre-retirement earnings now and after retirement.
Others blame weak demand, as high inflation, falling real wages and fears for the future discourage household consumption.
But as anyone who pays the bills or does the household grocery shopping knows, a government-reported 3.1 percent inflation rate is laughably low.
Inflation and interest rates were coming down from high levels, household leverage was very, very low, financial innovation non-existent, consumption had been deferred, and demography was coiled as the baby boomers were just coming on line.
Many want or need to rebuild the strength of their finances by spending less and, as today's Markit Household Finance Index shows, with wages stubbornly refusing to keep pace with inflation and benefit payments being constrained, most consumers feel poorer.
The authors looked at a range of economic metrics including inflation, unemployment, corporate profit growth, stock market performance, household income growth, economy (GDP) growth, months in recession and others.
Temporary, higher-than-normal inflation can facilitate wage and price adjustments and help erode the real value of household debts.
In 2008 domestic spending was squeezed by higher prices for oil and food (which account for a much higher share of household budgets than in other countries) and by tighter monetary policies, aimed at curbing inflation.
Double-digit house price inflation has been caused by a combination of low interest rates, relatively high disposable household income and the popularity of property as an investment when stock markets have performed poorly.
Kimberly-Clark, maker of various staple household products such as Kleenex wipes and Huggies diapers, also warned of the threat of incipient of inflation.
FORBES: PepsiCo, Starbucks And Others Wave Red Flag Of Inflation
应用推荐