I'm expecting inflation to pop 10% or more if the $15/hr minimum wage starts to take hold.
For those of us retired without a guaranteed cost of living increases it's devastating.
It's one thing to have a $15/hr minimum wage where the cost of living is high, quite another in poorer areas.
I live part time in Fairfax county Va and part time in Mississisippi. The average income in Fairfax is about $54K/yr, in my neck of the woods in Ms. its about $21K.
.... In my area, even the Post Office is advertising for applicants. When did that ever happen before?
I get your point that inflation is caused by too many dollars chasing too few of goods.I doubt the minimum wage is a strong driver of inflation. The number of people making less than $15 is relatively small and located in specific geographic areas and business segments. Yes, it would put a bit of upward pressure on other wages, but the more significant impact would be streamlining, automation and elimination of low value jobs (with resultant increased unemployment).
I think the uncontrolled inflow of money into an economy that cannot quickly deliver more products and services is much more important. If we inject all this money into "infrastructure" where are we going to find construction workers, healthcare workers, etc? In my area, even the Post Office is advertising for applicants. When did that ever happen before?
OR, same price but smaller cups!I get your point that inflation is caused by too many dollars chasing too few of goods.
This year my large cup of coffee regular coffee at McDonald's has increased in price by 24%.
I expect many retired people will experience at least a 25% across the board inflation this year.
SS averages out your top 35 earning years...So if you start late, have under the table jobs, or stop early; you might have some 0 or lower years in there. This would push your averaged index earnings down.. Go on SSA.gov and set up an account and it will give you estimates..If you stop working at 62 but do not collect does the monthly social security continue to increase even with no knee contributions coming in?