Funny Money
by Osman Parvez
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No doubt you’ve heard this sad, sad story. In the past, each generation of Americans saw better standards of living and higher pay. But today, the situation has changed. Wages have been stagnant for years. The American middle class is struggling, and now work longer hours for less money.
Oh, but is it really true?
Those decrying the end of the middle class would have you believe so. However, the analysis that most commentaries cite ignores fringe benefits. Because fringe benefits, including health care coverage, impacts standard of living. Once you add this back (and use a more appropriate measure of inflation), average hourly wages have risen by 16% over the past 30 years.
Looks like the Doom and Gloomers got this one wrong. Oops?
From the Federal Reserve Bank of Minneapolis
……….
Rather than falling by 4 percent over the past 30 years, average hourly earnings have actually risen by 16 percent. Growth in the median hourly wage went from 12 percent to a more respectable 28 percent.
Click the link to the article (above) for a very thorough analysis and discussion.
What are fringe benefits? From the Wikipedia definition:
Fringe benefits can also include but are not limited to: (employer-provided or employer-paid) housing, group insurance (health, dental, life etc.), income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits.
image: material boy
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Want to get blog updates via email? Click HERE.
Ready to buy or sell? Schedule an appointment or call 303.746.6896.
You can also like our Facebook page or follow us on Twitter.
As always, your referrals are deeply appreciated.
—
The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.
Funny Money
by Osman Parvez
—-
No doubt you’ve heard this sad, sad story. In the past, each generation of Americans saw better standards of living and higher pay. But today, the situation has changed. Wages have been stagnant for years. The American middle class is struggling, and now work longer hours for less money.
Oh, but is it really true?
Those decrying the end of the middle class would have you believe so. However, the analysis that most commentaries cite ignores fringe benefits. Because fringe benefits, including health care coverage, impacts standard of living. Once you add this back (and use a more appropriate measure of inflation), average hourly wages have risen by 16% over the past 30 years.
Looks like the Doom and Gloomers got this one wrong. Oops?
From the Federal Reserve Bank of Minneapolis
……….
Rather than falling by 4 percent over the past 30 years, average hourly earnings have actually risen by 16 percent. Growth in the median hourly wage went from 12 percent to a more respectable 28 percent.
Click the link to the article (above) for a very thorough analysis and discussion.
What are fringe benefits? From the Wikipedia definition:
Fringe benefits can also include but are not limited to: (employer-provided or employer-paid) housing, group insurance (health, dental, life etc.), income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation (paid and non-paid), social security, profit sharing, funding of education, and other specialized benefits.
image: material boy
—-
Want to get blog updates via email? Click HERE.
Ready to buy or sell? Schedule an appointment or call 303.746.6896.
You can also like our Facebook page or follow us on Twitter.
As always, your referrals are deeply appreciated.
—
The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.
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More about the author
Osman Parvez
Owner & Broker at House Einstein as well as primary author of the House Einstein blog with over 1,200 published articles about Boulder real estate. His work has appeared in the Wall Street Journal and Daily Camera.
Osman is the primary author of the House Einstein blog with over 1,200 published articles about Boulder real estate. His work has also appeared in many other blogs about Boulder as well as mainstream newspapers, including the Wall Street Journal and Daily Camera. Learn more about Osman.
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Thinking about buying or selling and want professional advice?
Call us at 303.746.6896
Your referrals are deeply appreciated.