More Bad News for Wages

I am just amazed at the glib comments made by the illustrious economic strategists. How about this quote on CNNMoney yesterday from Howard Simons who works for Bianco Research in Chicago:

“The American worker does not have a whole lot of bargaining power
right now,” says Simons. “We’re looking at the impoverishment of the
American wage earner.”

Consumer prices rose 5.6% from this time last July, which sent the market downward yesterday morning just before oil started to drop and the pendulum swung. The market closed up on a higher dollar and oil dropping. Ben Bernanke, the Fed chief is counting on the labor market remaining weak.

The Feds are counting on American workers not to ask for raises for fear that they may lose their job. Meanwhile the cost of groceries and energy have skyrocketed. To help the irresponsible banking industry, the strategy is to make it harder for workers to make ends meet.

Corporate America is listening to this advice, so prepare for little or no increases to be more the norm than the exception. If the Fed’s strategy continues to show promise, adjust your budgets to increase you monthly outlay for food, gas, and other things you buy, but don’t count on your revenue stream to increase.

Embrace this mindset and you will help the Feds use your wallet to bail out the banks.