The question for today is whether we’re in a wage-price spiral. If everyone’s monthly bills are being bumped 5-15% annually because of the inflation that happened over the past year, shouldn’t we expect continued inflation because workers will need salary bumps of 5-15% and then the monthly fees will go up 5-15% in 2024?
Anecdote: When we moved in a year ago, ADT bamboozled me into signing up for a three-year monitoring contract for the alarm system that was already installed in the house. Apparently buried in the fine print is a clause that allows them to raise the rate as much as they want. It is going up 11 percent. Here’s the email:
For the percentage calculation:
ADT did not get the memo from Joe Biden, Janet Yellen, and Jerome Powell that inflation has been whipped?
On the bright side, our lawn care monthly fee recently was bumped up by only 5 percent. The letter from the owner explains that his break-even rate is $30 per hour per person. Where are the low labor costs for laptop class members that open borders was supposed to deliver? (Harvard study)
Readers: Are we in a fully-established wage-price spiral?
You have to be some kind of blog legend to need that kind of security. Lowly commenters can leave their doors unlocked. As long as something drops by 11%, something has to rise by 11% to meet inflation targets. Whether or not it’s a spiral depends on if you need what goes up.
Are we in a fully-established wage-price spiral? Yes!
Are we in a fully-established wage-price spiral? Yes!
Is not the HOA supposed to maintain the lawn ? Or it’s in addition to ?
I welcome a wage-price spiral at this time. I am in the last three years of my government job and a wage spiral will inflate the average of my high three years’ salary, in turn, growing my lifetime, COLA-protected government pension.
Wage-price spiral? I guess we have to wait to see the ADT financials… may be just nice new record profits.
Yes, we are in a fully-established wage-price spiral. Anyone not admitting it is a bozo. Also, don’t forget that it’s just inflation, we are also experiencing service reduction as well as portion cuts.
Last year, my Big company’s health coverage was changed as such a new provider was used, including dental and eye care, to a new provider. Of course, the monthly payment went up, and my Big company hailed it as a decent increase for which we should be thankful, BUT, this new provider offers fewer services and higher out-of-pocket costs. You will see similar tricks with all sorts of services and products.
And of course, if you haven’t checked on package sizes for food, the same is being done there: same old package size, but with less in the package than used to be.
I’m glad Costco has not yet increased the cost of their cooked hotdogs and chickens. In time, Americans will live on hotdogs and chickens from Costco. Much cheaper, and arguably healthier than McDonald’s.
Consider getting some security cameras from Costco. After all, look how well you did with the steak from Costco. Plus, we can see if the Power Over Ethernet Switch. you get lasts longer than 1.5 years before the fan starts making a noise.