Nominal Wage – Goodwill Savannah GA http://goodwillsavannahga.org/ Thu, 30 Jun 2022 20:29:04 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://goodwillsavannahga.org/wp-content/uploads/2021/04/cropped-goodwill-32x32.png Nominal Wage – Goodwill Savannah GA http://goodwillsavannahga.org/ 32 32 Pritzker not happy about Griffin’s election losses https://goodwillsavannahga.org/pritzker-not-happy-about-griffins-election-losses/ Thu, 30 Jun 2022 19:48:00 +0000 https://goodwillsavannahga.org/pritzker-not-happy-about-griffins-election-losses/

After defeating his billionaire nemesis Kenneth Griffin, Illinois Governor JB Pritzker said he was unhappy to see the hedge fund mogul’s list of Republican candidates go down the election tubes this week, including including Aurora Mayor Richard Irvin.

As part of a declared bid to do ‘everything’ to defeat Pritzker’s re-election this fall, Griffin poured $50 million into Irvin’s Republican gubernatorial bid, only to see his staggering investment shrivel up with third place for Irvin in the six-man primary on Tuesday.

In an extensive interview with WBEZ after that election, Pritzker made it clear that he had no intention of celebrating the defeat of Griffin’s nominees for governor, attorney general, and secretary of state. A political rivalry dubbed the “Battle of the Billionaires” was an uphill battle that Griffin started, not him, the governor said.

“It’s not about me. It’s on him,” Pritzker said.

At the same South Loop hotel where Pritzker delivered his victory speech over a nominal primary challenger, the governor spoke about the fall campaign against GOP nominee Darren Bailey, efforts to make Illinois a “safe haven for those seeking abortions and his pledge not to run for president against Democrat Joe Biden in 2024.

Pritzker, a first-term Democrat, also reflected on the heightened US House hearings on Jan. 6 and said he believed last week’s blockbuster testimony from a former senior Donald Trump’s White House chief of staff could provide enough evidence to justify Trump’s criminal indictment. .

State Sen. Darren Bailey, R-Xenia, was the runaway winner of the Republican gubernatorial primary, and Pritzker has previously targeted the downstate farmer for his views on abortion and glowing endorsement he received from Trump, two issues that play heavily in the fall campaign.

Defeating Irvin and four others, Bailey and his strategists managed to turn him into a downstate grain farmer, ready to take a flamethrower for state overspending in Springfield and take on the governor. state billionaire.

Bailey has a solid presence on Facebook, with over 100,000 followers. He offers daily videos talking about everything from the day’s weather to his political travels and disdain for Democrats to his relationship with God. Most messages include Bible readings and prayers.

Pritzker, meanwhile, is leading a charge to keep abortions legal and accessible in Illinois after the U.S. Supreme Court overturned Roe v. Wade’s landmark 49-year-old opinion last week. Bailey has won support from anti-abortion groups and has pledged to tighten access to abortions, if elected, and restore Illinois’ parental notification law.

The governor recently ordered state lawmakers to return to Springfield to pass new abortion legislation and renewed his commitment to ensure Illinois remains a “safe haven” for those seeking abortions, both here and women from out of state.

“We just need to secure what Illinois is, which is a haven – a safe haven – for people who want to exercise those rights. We will not provide money to people from out of state who wish to exercise these rights. But they will be able to come here, and we want to help them find private sources if they want to support their ability to exercise those rights,” he said.

“But it’s my job to protect the women of the state of Illinois and also the people who want to come here to protect their own rights,” the governor said.

On Donald Trump, Pritzker said he watched US House hearings on January 6 and was alarmed this week when Cassidy Hutchinson testified about what she saw in the White House before and during the insurrection when she was one of White’s chief aides. Mark Meadows House Chief of Staff.

In her resounding testimony, she told the committee that she heard Trump cheering the Secret Service to ditch the magnetometers so that the former president’s armed supporters can walk to the Capitol unhindered.

“I was shocked and dismayed to hear that the president knew there were people carrying guns, and he said, according to her, ‘It’s okay. Take out the magnetometers. They’re not looking to shoot me. “I mean, think about it. He tacitly acknowledges that it’s okay if they’re looking to shoot other people, like the people he criticizes like Nancy Pelosi or other Democrats,” said Pritzker.

“He knew what was going on,” the governor said.

Pritzker said he believes Hutchinson’s testimony, along with other evidence presented by the House committee, should lead to criminal charges against Trump.

“I’m not someone who’s ever been a prosecutor or in the Department of Justice, but it seems to me that if you can combine that with evidence that he was plotting behind the scenes, I think that’s enough to indict someone.” one,” says Pritzker.

Another headline-grabbing element of Hutchinson’s testimony concerns his account of Trump trying to grab the steering wheel of his Secret Service detail as he drove to the White House after speaking at his “Stop the Steal”.

She testified under oath that Trump was furious that his security team ignored his request to take her to the Capitol after his speech and reached “the collarbones” of his top security official, a claim Trump and his allies have claimed. denied.

Asked if he could imagine reaching for the steering wheel of one of his security detail members or getting physical with one in a fit of anger, Pritzker replied, “Absolutely not. And if you’ve seen my details, you don’t want to get physical with any of them. They will throw you away.

Trump appears to be aiming for another presidential race in 2024, but has not officially declared his candidacy. Democrats across the country worried about Biden’s re-election chancesgiven that his approval ratings are in the upper 30 bracket, dragged down by the economy and his inability to push key issues — like voting rights — through Congress.

Biden’s apparent vulnerability and threat to hurt downside Democrats has led to questions about who might emerge as a viable replacement among Democrats. But Pritzker made it clear to WBEZ that he would not be part of it. Pritzker’s potential viability as a presidential candidate himself was highlighted during a recent trip to New Hampshire, home of the nation’s first presidential primary.

“I have no interest in challenging Joe Biden in 2024,” Pritzker said. “I will support him if he runs for office. I am a Democrat [and] think we need to elect a Democrat. And I think Joe Biden has already said he’s a candidate for re-election.

This cautious language apparently protects the possibility of making a run if Biden were to drop out of a re-election race.

Here at home, Pritzker put up impressive numbers on Tuesday despite only facing a nominal challenger. Scoring at least 753,000 votes in a largely uncontested primary, Pritzker surpassed his 2018 primary tally and nearly eclipsed the total number of votes cast this year for all six gubernatorial candidates combined. Bailey, on the other hand, got at least 453,000 votes on Tuesday.

“I truly believe that the… people who live in this state are not extremists. I think it comes from the numbers [Tuesday]Pritzker said. “People wanted to show up and vote in the Democratic primary, if only to say we’re not with these extremists.”

With Bailey’s victory in the primary and downstate attorney Thomas DeVore’s victory in the attorney general’s primary — a lawyer who helped Bailey fight a legal fight against public health mandates in the State during the pandemic – Pritzker said the Republican Party in Illinois has veered sharply to the right. It’s an area general election voters will reject and a sign that the state’s GOP has no room for moderate Republicans, the governor said.

“They will continue to be a minority party if they continue to move further and further to the right. There is a huge schism within the Republican Party. They’re going to have to sort this out on their own. But they’ve now nominated outright hardline Republicans, Trumpy, MAGA to represent them in the gubernatorial race. [and] the Attorney General’s race.

“I mean, we’re going to have to fight to make sure these people never see a statewide office,” the governor said.

Pritzker and the Democratic Governors Association poured millions into ads during Bailey’s primary promotion because Democrats considered him a better fall match than Irvin, who was more socially moderate than Bailey and had access to Griffin’s seemingly endless supply of funding dollars. .

Now, Griffin’s continued financial commitment to Illinois Republicans is in serious question, potentially giving Pritzker a huge resource advantage over Bailey.

Bailey’s main benefactor was Lake Forest businessman Richard Uihlein, who committed over $9 million to his main campaign. But that’s a relatively small number next to what the billionaire governor poured into his 2018 gubernatorial effort.

Asked if re-election this fall would cost more than $170 million in his first election in 2018, Pritzker replied, “Listen, I’m going to get our message out in the general election, whatever it takes. And I continue to do it every day. I think people listen to my message and believe in the direction of the state.

Dave McKinney covers Illinois government and politics. Follow him on Twitter at @davemckinney.

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Why the inflationary surge in UK public finances is unlikely to last https://goodwillsavannahga.org/why-the-inflationary-surge-in-uk-public-finances-is-unlikely-to-last/ Tue, 28 Jun 2022 03:00:23 +0000 https://goodwillsavannahga.org/why-the-inflationary-surge-in-uk-public-finances-is-unlikely-to-last/

Inflation was a boon for Rishi Sunak, increasing Britain’s tax revenue and reducing the country’s budget deficit, giving the Chancellor a windfall which he used to promise future tax cuts.

But politicians, officials and economists don’t believe the good times will last.

They predict that a combination of higher interest payments on the debt, real wage cuts and pressure on public services should make the Chancellor’s life more difficult, leaving him with the choice between deteriorating public services or deterioration of public finances.

Sunak expressed similar concerns, saying last week that “rising inflation and rising debt interest costs pose a challenge for public finances, as they do for family budgets.”

In what the Chancellor might consider unnecessary comments, David Miles, one of three heads of the Office for Budget Responsibility, the government’s spending watchdog, told a public conference last month that how public finances were likely to improve in the coming years “has much more to do with raising taxes than the ability to inflate debt or expect higher GDP growth beyond above the average levels we have seen over the past 10 or 15 years.

The effect of inflation so far

Despite the Chancellor’s warnings, inflation has so far improved public finances by reducing the deficit, as tax revenues are more sensitive to rising prices than government spending.

Over the last financial year, tax revenues paid to central government have been much higher than expected by the OBR, with particularly strong revenues coming from income tax.

The latest official estimate of total tax revenue shows £837.5bn was collected in 2021-22, better than the £823.5bn forecast by the OBR at the time of the March Spring Statement, and over 6% better than the £789.5. billion in the watchdog’s October forecast.

At the time of the spring statement, the OBR predicted that over the medium term higher inflation and faster wage growth would bring in £37bn a year in additional tax revenue, but added that this would be offset by £23bn a year. billion pounds of higher social security spending. and debt interest.

He added that in the short term, when inflation was likely to peak in 2022-23, there would be a one-off sharp increase in the amount of money the government had to set aside to pay for its £500billion hike. inflation. – related obligations. The OBR said in March it would be £42.2bn more than it had forecast six months earlier.

How inflation could help public finances

Inflation tends to reduce government borrowing because it increases tax revenue more than government spending. Tax revenue is closely related to nominal gross domestic product – the amount of spending or income in an economy – so if nominal GDP increases because prices or wages increase, tax revenue also increases.

Parts of government spending are also linked to rising prices. Pensions and social benefits are indexed to inflation, with a lag of several months, as is the cost of servicing indexed government bonds. These represent about half of public expenditure, the other half being determined by fixed budgets.

If these fixed budgets do not increase, inflation reduces borrowing at the cost of an unplanned decline in the real level of government spending.

This positive effect is currently reinforced as all income tax allowances and thresholds have been frozen for four years. When Sunak implemented the policy, he expected the measure to raise £8.2bn a year by 2025-26. The OBR now expects it to raise £18bn, as higher inflation ensures the freeze will reduce the actual level of these thresholds more than expected.

How Inflation Could Harm Public Finances

Higher social benefits and the increased cost of servicing indexed bonds due to rising inflation automatically increase government spending. But the difficulty for the chancellor is that he will come under heavy pressure to increase total public spending in the fixed budgets he directly controls.

Bar chart of rising forecast for interest on debt (in billions of pounds sterling) showing that inflation has increased the cost of servicing UK public debt, particularly in the year it peaks

To address the cost of living crisis, Sunak has already offered municipal tax rebates, fuel tax rebates, energy bill rebates, and a one-time supplement for all who benefit from means-tested benefits – a package worth £15 billion.

Economists believe it will have to go further and increase public speaking more generally. Carl Emmerson, deputy director of the Institute for Fiscal Studies think tank, said government spending plans are now much tighter than Sunak had expected when he set them in 2021. “He may have to be reopening spending agreements,” Emmerson said.

A flashpoint will be public sector compensation. Torsten Bell, chief executive of the Resolution Foundation think tank, said: ‘It is unrealistic to bank better tax revenue forecasts when public sector wages are expected to be lower than those in the private sector.

And with gas and electricity prices soaring and the UK a net importer of energy, the country will be worse off due to rising inflation. Emmerson said: “This kind of inflation makes us poorer, so improving public finances is fundamentally unlikely.”

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Big rate hikes needed as global stagflation risks loom, BIS warns https://goodwillsavannahga.org/big-rate-hikes-needed-as-global-stagflation-risks-loom-bis-warns/ Sun, 26 Jun 2022 10:20:07 +0000 https://goodwillsavannahga.org/big-rate-hikes-needed-as-global-stagflation-risks-loom-bis-warns/

SINGAPORE – The Bank for International Settlements (BIS) has warned that risks of global stagflation – a combination of high inflation and an economic slowdown – are “prevailing” due to high and volatile commodity prices, war in Ukraine and slowing growth in China.

Central banks will need to act “quickly and decisively before inflation takes hold,” BIS Chief Executive Agustín Carstens said in the body’s annual post-meeting report on Sunday, June 26. .

The Basel-based BIS, which is known as a “bank of central banks” and acts as a forum for international monetary policy cooperation, said in the report that current conditions bear “uncomfortable resemblance to past episodes. of global stagflation”.

The world economy last experienced stagflation after the oil shocks of the 1970s both produced inflation and pushed many economies into recession.

But the BIS stressed that unlike in the past, stagflation today would occur alongside heightened financial stress, including stretched asset prices and high debt levels, a “historically unprecedented combination” that “could amplify any slowdown in growth.

Last month, consumer price inflation hit more than 40-year highs of 8.6% in the United States, a record 8.1% in the euro zone and multi-year highs in several other countries.

While it is lower in Asia, it even exceeded central bank targets over the year.

Stubborn inflation

The BIS stressed that “at a minimum, a period of below-trend growth will be needed to bring inflation down to acceptable levels.”

But he added that “a modest slowdown might not be enough – bringing down inflation can involve significant production costs. Even then, inflation might not come down quickly, given the intensity of the recent price pressures.

According to the BIS, a convergence of forces has fueled inflation: a rapid recovery from the Covid-19 recession in early 2020, aided by massive monetary and fiscal support, which boosted household incomes; a rotation of demand from services to goods and a failure of supply to follow – particularly for energy and raw materials; and the war in Ukraine, which intensified price increases in these markets.

The BIS pointed out that inflationary pressures can be self-reinforcing and entrenched due to behavioral changes.

He warns that there are several signs that this is happening: inflation expectations among households and financial market participants have started to rise.

After a year in which real wages grew unusually slowly or fell, the conditions for faster wage growth are in place.

“As existing wage agreements expire, workers are likely to seek larger wage increases,” the BIS said.

And widening inflationary pressures suggest that many companies have more pricing power than they did before the pandemic.

Threats to growth

Inflation and in particular commodity market disruptions will also weigh on growth, according to the BIS, by raising companies’ production costs and reducing supply.

Financial strains in the form of high levels of public and private debt will amplify the slowdown.

The same will be true for the weaknesses of the Chinese economy.

Over the past two decades, China has accounted for around a quarter of global growth and has been a major source of demand for raw materials.

But its growth will be weighed down by local closures in response to the Covid-19 epidemics in some cities, which are disrupting production networks.

Problems in the real estate sector, which by some estimates accounts for around a third of China’s growth, will also weigh on the economy.

The BRI pointed out that China’s slowdown could be long-lasting as it is partly structural.

The working-age population has peaked and the potential for high productivity growth from the reallocation of labor to high-productivity activities has diminished.

The deflationary effects of China’s entry into the global trading system over the past 20 years could also fade in the wake of rising wages and costs, which also increases the risk of stagflation.

Difficult political choices

Dealing with inflation presents challenges policymakers haven’t faced in decades, at least in advanced economies, according to the BIS.

The most pressing challenge for central banks is “to restore low and stable inflation without, if possible, inflicting severe damage on the economy.”

Gradual increases in policy rates below inflation mean that real interest rates (nominal rates minus inflation) will be negative, which would not keep inflation under control.

Real rates should therefore “rise significantly” – otherwise larger and more costly rate hikes will be needed in the future.

But there is a trade-off that policy makers need to consider.

“Tightening too hard too quickly could cause unnecessary damage,” BIS pointed out.

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Protests force Eskom in South Africa to extend power cuts https://goodwillsavannahga.org/protests-force-eskom-in-south-africa-to-extend-power-cuts/ Fri, 24 Jun 2022 09:02:00 +0000 https://goodwillsavannahga.org/protests-force-eskom-in-south-africa-to-extend-power-cuts/

June 24 (Reuters) – South Africa’s state-owned electricity company Eskom said it would be forced to extend power cuts on Friday and over the weekend as union protests linked to the stalled negotiations wages disrupt operations.

The utility, which has struggled to meet power demand in Africa’s most industrialized nation for more than a decade, has implemented “phase 2” spin outages since the start of the week.

But it will increase the severity of “phase 4” outages, requiring up to 4,000 megawatts (MW) of capacity to be removed from the national grid, from 11:00 a.m. local time until midnight (09:00-22:00 GMT) on Friday.

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Phase 4 outages will also be implemented from 05:00 local time until midnight on Saturday and Sunday.

“While exploring possible solutions to unblock the standoff with the unions, Eskom calls on its union partners and striking employees to embrace the overriding goal of putting the people of South Africa first,” Eskom said in a statement.

Eskom said earlier that the protests had included incidents of employee intimidation and blockades of roads leading to power stations. The company asked the police to restore order.

Negotiations with unions, including the National Union of Metalworkers of South Africa, broke down on Tuesday. Eskom’s wage negotiations have become complicated in the past, leading to similar protests that have hampered operations.

The loss-making utility, struggling with a huge debt approaching 400 billion rand ($25.12 billion), is trying to contain costs as part of turnaround efforts under chief executive Andre de Ruyter. Read more

Reforming Eskom is a priority for President Cyril Ramaphosa’s government, but efforts to improve the performance of power plants have yet to bear fruit.

Eskom has a total nameplate capacity of 46,000 MW, but it said on Friday more than 20,000 MW was offline due to outages and scheduled maintenance.

($1 = R15.9266)

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Reporting by Anait Miridzhanian and Alexander Winning; edited by Susan Fenton and Jason Neely

Our standards: The Thomson Reuters Trust Principles.

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Glastonbury Festival tickets could cost £78,000 in 50 years, research suggests https://goodwillsavannahga.org/glastonbury-festival-tickets-could-cost-78000-in-50-years-research-suggests/ Tue, 21 Jun 2022 07:45:15 +0000 https://goodwillsavannahga.org/glastonbury-festival-tickets-could-cost-78000-in-50-years-research-suggests/

The Glastonbury Festival returns this week for the first time since before the Covid-19 pandemic. Tickets for this year’s event cost around £280, around half the average weekly wage in the UK, according to research.

Although the festival is considered quite expensive, it is also known for its good value for money. No other festival equals its range of acts, areas and activities.

But now, new research estimates that if inflation continues to rise at its current rate, the cost of festival tickets at Worthy Farm could skyrocket. Obviously, we hope that this analysis can be taken with a grain of salt.

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But research should focus minds during the cost of living crisis. And given that tickets were cheap at the start of the festival in the 1970s – a cost that seems unimaginable now – the huge screenings aren’t as bizarre as they seem.

Glastonbury ticket price trends – 1970 to 2022

According to new data from Insure4Music, tickets to the iconic music festival could reach £78,000 by 2072 if inflation trends continue at their current rate. The research uses ticket data from the first Glastonbury Festival in 1970 and analyzes historical records for nominal average wages in the UK as well as the development of the general economy fifty years from now.

In 1970 it cost just £1 to attend Glastonbury – which has risen by 27,900% for the £280 ticket price this year. This means that if prices rise by the same amount over the next fifty years, a ticket could cost £78,400 for the festival’s 100th anniversary in 2072.

The Glastonbury Festival was very different in 1970, with the event lasting just one day and being held in September. The £1 entry fee also included milk from Worthy Farm.



Michael Eavis still has cows at Worthy Farm, having offered milk to festival-goers in the 1970s

The nominal average weekly wage of a full-time British worker in 1970 was £18.37, meaning that a £1 Glastonbury ticket was equivalent to around 6% of the average weekly wage. In today’s economy, £18.37 in 1970 is worth £302.78 thanks to inflation – with the £1 note also amounting to £16.48 in the economy of 2022.

However, the current average weekly wage is £556 and tickets to Glastonbury are £280. This equates to about 50% of the weekly salary of a nominal average earner.

This means that there has been a 44% increase in the ticket to weekly wage ratio since 1970. If this trend continues, nominal average weekly earnings in the UK are expected to climb to over £83,000 by 2072 for keeping pace – that’s around £4.3million a year.

‘Unfathomable’ prices at Glastonbury are possible in the future

John Woosey, Founder of Insure4Music, said: “We all know festivals can be expensive, but it’s only when you see numbers presented like this that you’ll truly understand how much things have changed and how much they might still change.

“These price projections are unfathomable today, but again so is the idea of ​​Glastonbury costing just £1. The truth is no one really knows what the future will look like, but there is Huge changes are on the horizon if history is to be believed.

In June 2019 – before the pandemic – Glastonbury Festival tickets cost £248. This is worth £264.08 today, such is the constant rate of inflation in the UK.

At the same time, the average wage was £537.50 a week. This meant that a worker earning this would have had to part with 46% of their weekly salary to attend Glastonbury in 2019.

]]> The real minimum wage has fallen in most EU member states – Novinite.com https://goodwillsavannahga.org/the-real-minimum-wage-has-fallen-in-most-eu-member-states-novinite-com/ Sun, 19 Jun 2022 11:20:11 +0000 https://goodwillsavannahga.org/the-real-minimum-wage-has-fallen-in-most-eu-member-states-novinite-com/

In a context of inflation which affects European countries, minimum salaried workers in 15 of the 21 Member States with a minimum wages recorded a decline in their wages in real terms between January 1, 2021 and January 1, 2022. This despite relatively large increases in nominal rates EU during the period.

The impact of inflation on low wages is an important aspect of Eurofound’s work Minimum wages in 2022: Annual reviewpublished shortly after the political agreement on a minimum wages between the European Parliament and the EU Member States. The Eurofound report shows that there are already signs that the proposal for a directive is having a positive impact, with certain actors refocusing the debates on the subject, preparing possible changes to the system or the criteria for setting wages, or upgrading wages in accordance with the “international reference values” mentioned in the proposal.

In statutory nominal terms minimum wages increased to a greater extent than the previous year in most Member States. In five regions of the center and east European Member States, the percentage increase in statutory rates reached double digits: Hungary (19.5%) and Lithuania, Estonia, Romania and Croatia (all above 10%). In the pre-enlargement Member States, minimum wages generally increased more modestly, with the largest increases reaching 4-6% in Portugal, Spain and Belgium.

However, inflation reversed the effects of these increases in most Member States. If current inflation trends continue, minimum wages will hardly increase in real terms in any country in 2022, and significant losses in the purchasing power of minimum wage earners will become a dominant theme – unless the problem is solved by additional increases or other support measures for low-wage earners during the year.

The report indicates that substantial debates between national actors on how to promote collective bargaining and increase bargaining coverage take place only in Denmark, Latvia and Norway (also analyzed in addition to EU Member States). The establishment of action plans to promote collective bargaining is an important element of the new EU directive on minimum wages and will be an essential requirement for Member States.




The report also shows that minimum wages can play a key role in reducing wage inequality. Findings for Spain show that the impact of the 22% increase in minimum wage in 2019 led to the largest reduction in wage inequality in EU Member States the same year. This is probably due to the minimum wage increase, which counterbalanced the high level of wage inequality in Spain, a gap that had widened in the year preceding the increase.

Speaking on the release of the report, Eurofound’s Executive Director Ivailo Kalfin said “This research clearly shows that although there have been substantial nominal changes in minimum wages in several Member States, these are unlikely to be felt sufficiently in real terms by low earners. The provisional agreement between the European Parliament and Council come at a crucial time, we must ensure that low wages are as protected as possible from the large-scale effects of inflation across Europe.”

/Eurofound

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Here’s what the Fed’s rate hike means for your paycheck https://goodwillsavannahga.org/heres-what-the-feds-rate-hike-means-for-your-paycheck/ Fri, 17 Jun 2022 23:02:00 +0000 https://goodwillsavannahga.org/heres-what-the-feds-rate-hike-means-for-your-paycheck/


San Francisco
CNN Business

American workers saw their wages climb faster than at any time since the mid-1980s. But inflation rose so quickly that workers actually took a pay cut instead.

Every time inflation rises, it eats into workers’ wages and eats away at their bank accounts. And this current wave of inflation – triggered by a confluence of events including the war in Ukraine and the ongoing pandemic – has had a voracious appetite.

This means wage increases have actually turned into losses, with the latest inflation report showing consumer prices rose 8.6% for the year ending May. As a result, the average consumer must pay about $460 more each month than this time last year to pay for the same goods and services, according to Moody’s Analytics. Additionally, research from the University of Michigan found that real disposable income per capita is on track to post the biggest annual decline since 1932.

Worse still for American workers, the Federal Reserve has embarked on a rate-hike campaign aimed not only at reining in inflation, but also wage growth.

“When the Fed meets and makes its policy decision, most people don’t understand that what the Fed is saying is ‘you’re making too much money, your wages are rising too fast, and we need to slow the demand for labor. work, and we need to slow wage increases,” said William Spriggs, professor of economics at Howard University in Washington, DC, and chief economist of the AFL-CIO union.

But wage growth is not, to any significant degree, driving inflation, said Mark Zandi, chief economist at Moody’s Analytics.

“Causality runs from inflation to wages, not from wages to inflation,” he said.

Instead, the main drivers of today’s price increases are actually a series of extreme supply shocks, including global supply chain failures and the war in Ukraine, Spriggs said.

“You can’t just remove major wheat production, major edible oil production, major fertilizer production, major oil production, major natural gas production, major [semiconductor] chips used in automobiles and think you’re not going to have inflation,” he said. “When this is featured in the US news, you get this idea that if our stimulus checks had been lower and our wages had gone down, we wouldn’t have this inflation. No one in the world accepts this point of view.

America may not technically be in a recession – but for many people it is certainly starting to be.

“When you start looking at this data, you start to think that the people who are really in distress might be right; that the situation is far more dire economically than the data economists normally look at,” said Donald Grimes, a University of Michigan economist who has conducted research on real-world trends in after-tax income.

Nominal wages for full-time workers rose an average of about 5% in the 12 months ending May 2022, according to the Federal Reserve Bank of Atlanta’s Wage Growth Tracker. The tight labor market, a renewed movement to strengthen workers’ rights, and efforts by states and some large employers to raise the minimum wage have all contributed to significant wage growth over the past year.

A motorist fills up with gas at a Valero gas station, Saturday, June 11, 2022, in Houston.

Adjusting for inflation, however, real wages are hovering minus 3.5% over the same period, and they’re down across the vast majority of industries, according to a CNN Business analysis of Bureau of Labor data. United States Statistics.

“In terms of actual purchasing power, a lot of the gain is basically getting the rug pulled out from under you,” said Conference Board senior economist Erik Lundh.

Real disposable income levels are about where they were before the pandemic, Grimes said. However, they don’t behave like they normally do, which would be to grow at a rate of 2 to 3% per year. Instead, they are on track to fall 5.6%, he said.

The sharp drop is partly due to inflation, but also to the end federal pandemic assistance.

“For people who saved some of that money to support expenses, life is probably still pretty good,” he said. “But for people living paycheck to paycheck, this decline in real disposable income…it’s a lot more painful than economists and policymakers think.”

The Fed is indeed in a precarious position. While it raises rates to tame inflation, it must try not to plunge the economy into a recession.

The Fed committee said in its statement on Wednesday that it was “strongly committed to bringing inflation back to its 2% target,” indicating that more aggressive hikes are not ruled out.

The Fed also said it does not expect inflation to decline this year and sees unemployment rising to 3.7% in 2022, higher than its March forecast.

“I think they have a chance to land the economy plane on the tarmac without crashing it,” Zandi said. “We need some luck on the pandemic and on the fallout from the Russian invasion.”

High inflation and general economic volatility have also sparked fears among some economists and policymakers that wages and prices would engage in a foot race, creating a 1970s-style price-wage spiral environment where inflation soars even higher.

However, a return to the stagflationary environment of the 1970s is a bit premature, said Lundh.

“It’s the kind of environment that’s been going on for years,” he said. “We can see a degree of stagflation, later in 2022 and 2023 in terms of growth rates really collapsing well below potential and inflation staying well above target, but I don’t think not necessarily that it will be at the same level or the same duration as what we saw in the 1970s.”

US Federal Reserve Chairman Jerome Powell speaks during a press conference at the Federal Reserve Building in Washington, DC on June 15, 2022.

The strength of Americans’ balance sheets and tax returns are helping to ease concerns, said Tim Mahedy, senior economist at KPMG.

People have a cushion of savings from federal spending programs during the pandemic, he said, noting that while revolving credit as a share of personal income is up from last year, levels remain healthy.

“We can’t keep doing what we’re doing, but consumers have time for inflation to hopefully come down,” he said, pointing out that the inflation numbers and shares of the Fed over the next few months will prove critical.

If inflation doesn’t start to cool within the next two months, consumers will begin to feel more pain, he said.

“We have buffer and time, but we are running out.”

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The trucking industry at a crossroads in 2022 https://goodwillsavannahga.org/the-trucking-industry-at-a-crossroads-in-2022/ Wed, 15 Jun 2022 17:41:16 +0000 https://goodwillsavannahga.org/the-trucking-industry-at-a-crossroads-in-2022/

The trucking industry is much more in the public eye today than it has been in recent years.

As a critical link in the supply chain, trucking has been a hot topic in the media throughout the pandemic. All of this attention means that truck driving as a profession is now viewed with greater respect and appreciation, both as an irreplaceable part of the economy and a source of growth for people entering the labor market. work. But the COVID-19 pandemic is taking a heavy toll on trucking and transportation, leaving truckers stressed. These same drivers are now literally and figuratively in the driving seat to push their industry to a new level — but are employers ready to listen and change?

Last year, Centerline Drivers surveyed both truckers and business owners for insights into the transportation industry, and these are the key takeaways about the state of trucking today.

Pay boom or pay bust?

Competition, inflation, and the growth of the e-commerce industry have all led to significant increases in driver pay rates, especially over the past year. However, 55% of drivers still do not think the compensation is competitive enough. Rising wage rates are nearly offset by inflation in some parts of the country, and while 68% of employers plan to step up and raise wages this year (compared to just 44% in 2021), those increases are nominal, only $1 or $2 per hour.

Salaries remain a main attraction for employees, as well as a motivating factor for performance. By increasing wages (not to mention improving benefits and incentives), trucking companies can hire the best workers and keep them happy and productive in their jobs. In the long run, higher wages are an investment in higher profits because more productive and dedicated drivers will create fewer problems and more positive results.

Driver well-being

Support for wage increases is not surprising given the heavy toll trucking takes on drivers’ daily lives, especially in recent years of increased demand and strict scrutiny. Healthcare professionals have been at the forefront of the conversation about burnout in the wake of COVID-19, but critical workers like truckers deserve equal attention in broader national conversations about the burnout and fatigue.

Health and well-being are receiving increasing attention in the industry, as many truckers report suffering from driving ailments. Almost half (49%) of drivers say the sedentary nature of sitting inside a truck has caused them to gain unhealthy weight. This weight gain is compounded by poor nutrition as 35% of drivers resort to fast food due to the demands of the road. Truckers also cite knee, back and shoulder problems when sitting in cramped driver seats for long periods of time.

While many drivers try to make mental and physical health a priority (66% strive to eat healthy meals on the road and 62% try to exercise when not driving), this n is not always accessible. And 12% say they do nothing to take care of their health.

Safety is at the forefront of every driver’s mind, and growing safety concerns are putting mental pressure on them. The main security problem for 71% of truck drivers are distracted while driving, especially other drivers. No less than 75% believe that fatigue is a real problem for drivers, which has been on the rise since 2021, while 66% considered it to be a problem. Severe fatigue is not surprising when drivers report getting only 5 to 7 hours of sleep per night, which is well below the recommended hours of sleep for adults. This only underscores the toll of the pandemic on the mental and physical health of drivers.

Like many essential workers, truckers have suffered tremendously from the pandemic (38% of drivers have been negatively impacted by COVID-19, from catching the virus while driving, having to take caring for sick loved ones or even losing family to illness). Given these losses and impacts, home and family in general are top concerns for drivers, with 38% citing them as their top concerns.

It’s time to get creative with recruiting

Perhaps the most pressing problem for trucking is the difficulty of recruiting new drivers. A majority (72%) of employers say they have difficulty finding drivers, up from 57% last year. Yet less than 25% do something creative to promote recruitment. Even those using creative methods seem to be doing the same thing: more money for social media, advertising, bonuses, pay raises, and standard incentives. New ideas are needed to generate the excitement that will attract new drivers.

One way to attract new workers is to explore diverse talent pools. Most employers (92%) and even drivers (83%) believe the trucking industry is diverse, but on average, employers say their workforce is less than 10% female. Diversity can mean many things (gender, ethnicity, age, national origin, sexual orientation and more). Given the consequences of burnout and mental and physical well-being, there may be an opportunity to stand out not only by recruiting from a diverse pool, but also by rewarding recruits with better benefits and support. to work-life balance.

The future is fast approaching, but are we ready?

To attract high school graduates into the trucking profession, the federal government is considering lowering the required age for drivers to 18. It’s one of many new solutions to industry dilemmas, but despite this huge opening in the talent pool, 46% of drivers think it would be a negative change.

Ultimately, the companies that will thrive will be those that don’t necessarily listen to conventional wisdom. Young drivers are one idea, but it’s also possible to tap into different talent pools. A nurse recently changed careers to truck driving, and many industries have surprising crossover characteristics that apply to trucking. Companies could also tap into groups of compatible subcultures, such as motorcycle enthusiasts. After all, 21% of truckers own a motorcycle.

The bottom line(s)

The bright future of trucking depends on the bright future of truckers. Employers who take the best care of their employees will ultimately win in the marketplace. Salary expectations for drivers have risen with inflation and need, so paying competitively is the best way to attract and retain top talent. The best leaders will also understand that taking care of a driver means taking care of the whole person, on and off the road. The mental and physical well-being of drivers must be a priority, and programs to better meet their needs are essential to keep drivers productive and safe on the road.

But first we need to make sure we have drivers to support. Recruitment has stalled, with many employers stuck with the same tried-and-true and now less-than-true methods. The industry needs fundamental change, and fast. As with other highly competitive spaces, like technology and nursing, diversity is the way to go. Trucking as a whole needs to expand its appeal to a wider audience, including young people, women, and new racial and cultural groups who have already made inroads in the field.

Employers and drivers must embrace change, and fast. As technology becomes more pervasive inside and outside the cab, the industry must adapt while ensuring truckers stay motivated, healthy and competitive.

Who is a truck driver, according to Central Drivers Survey?

  • First Generation – the first in their family to enter this career
  • Have a high school diploma or college education
  • Listen to R&B and classic rock
  • Valuing independence and compensation
  • Don’t make them drive as a team! Only 23% said they would like to do it again
  • More than half are willing to move for a driving job opportunity
  • 7 out of 10 drink coffee
  • On average, started driving at age 31 and plans to retire at age 66
  • Main motivating factors: compensation, route types and work-life balance
  • Most have over 5 years of trucking experience
  • Average age: late 40s to early 50s
  • Top places on their to-do list for driving: Florida and Alaska

Jill Quinn is the Executive Director of Centerline Drivers and PeopleReady Skilled Trades, driving business growth and performance excellence and cultivating customer partnerships for these two TrueBlue companies. With 25 years of leadership experience, Quinn’s knowledge and expertise ensures clients receive the skilled tradespeople or skilled drivers they need to drive their business forward. His passion for making a difference in people’s lives by connecting them to work has led to many successful partnerships between customers looking to grow and a skilled workforce that deserves great opportunities.

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Prime Minister Anthony Albanese and Opposition Leader Peter Dutton get a pay rise for weeks in their new jobs https://goodwillsavannahga.org/prime-minister-anthony-albanese-and-opposition-leader-peter-dutton-get-a-pay-rise-for-weeks-in-their-new-jobs/ Tue, 14 Jun 2022 08:01:00 +0000 https://goodwillsavannahga.org/prime-minister-anthony-albanese-and-opposition-leader-peter-dutton-get-a-pay-rise-for-weeks-in-their-new-jobs/

Opposition Leader Peter Dutton, who receives base salary and an 85% charge, will see his annual income before allowances rise to $401,561.

The President and Senate Speaker’s salary will rise to $379,855 before allowances, while Greens leader Adam Bandt will earn $314,737 from July 1. Presidents receive a 75% charge while the leader of a minority party with more than 10 representatives receives 45 per cent charge.

Politicians elected since 2004 do not receive parliamentary pensions upon retirement, but instead receive pension contributions of 15.4%.

Former ministers in the Morrison government who have been demoted to the opposition backbench no longer receive charges on top of the base salary. In government, they received a 72.5% increase, or $157,368 at the new base figure.

The announcement means politicians will get a bigger pay rise than most other workers, although the increase is still not enough to keep pace with inflation.

In the year to March, public sector wages rose 2.2% while private sector wages were 2.4% higher, according to data from the Australian Bureau of Statistics.

However, the Reserve Bank of Australia expects the pace of nominal wage growth to accelerate to 3 percent by the end of the year, thanks to Australia’s tight labor market. Workers should not see an increase in real wages before the end of 2023.

The Fair Work Commission has announced that it will make its decision on the minimum wage tomorrow at 10 a.m.

In making its decisions on politicians’ compensation, the court considers economic conditions, including the Fair Work Commission’s annual salary review, the outlook for the federal budget, and government policy on labor relations in the sector. audience.

“In determining compensation for the wide range of public functions within its jurisdiction, the tribunal’s primary focus is to provide competitive and fair compensation, commensurate with the responsibilities and experience required for the roles, and sufficient to attract and retain people of caliber. “, the court said in a statement.

“Many of these office holders do not expect monetary compensation for their roles in the public sector to be set at the private sector level. Rather, office holders serve the public good and by setting the compensation, the court has traditionally set lower rates than the private sector.

The tribunal is an independent statutory authority created to set the compensation of federal deputies and parliamentary office holders, judges and non-judicial offices of federal courts and tribunals, corporate secretaries in the civil service.

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ALP sits idle while capitalists trash living standards https://goodwillsavannahga.org/alp-sits-idle-while-capitalists-trash-living-standards/ Sun, 12 Jun 2022 12:55:33 +0000 https://goodwillsavannahga.org/alp-sits-idle-while-capitalists-trash-living-standards/

If you want a model of society that puts profits before people, Australia at the moment wouldn’t be a bad place to start. Matt Grudnoff, senior economist at the Australia Institute, last month described the recent slump in living standards as “Australia’s biggest real wage destruction since records began”. The Reserve Bank has said declines could continue, month after month, through the end of 2023. Yet the newly elected “Labour Party” barely lifts a finger to address it.

The federal government has asked the Fair Work Commission to raise the minimum wage to last year’s inflation rate of 5.1% because, it says, the PLA doesn’t want the poor backed down. It’s a sleight of hand. Workers have already been set back over the past twelve months by an average of $2,000, according to the Australian Council of Trade Unions. They will not be compensated for this.

The government’s demand for a 5.1% pay rise is for next year, presumably to keep people from rolling back. But Diana Mousina, senior AMP economist, says inflation could approach 7% in the coming months; and the RBA is now saying it could even exceed that figure by 2023. So 5.1% won’t be enough to prevent another one year of real wage cuts imposed on the lowest paid workers. And that’s assuming Fair Work grants even that paltry nominal wage increase.

All of the major employer associations’ submissions to the commission call for a substantially lower increase in the minimum wage. Why wouldn’t they? It’s a simple class war: transferring wealth from the workers to the capitalists. Every day that consumer price inflation is higher than wage growth is a day that bosses are making workers pay the cost of doing business.

Right now, there may not be any section of the workforce moving forward. As Eleanor Morley notes on page 4, the country’s 1.7 million civil servants are also crushed, many of them against the 1.5 or 2.5 per cent wage caps imposed by Labor governments. States.

Inflation is only a curse on workers if wages do not keep pace, but financiers consider high inflation to be evil simply because it is the process of devaluing money. And those with large amounts of cash, like banks, are disproportionately hit by higher inflation because their stores of wealth are shrinking faster than usual. This is the main reason the Reserve Bank has a “target” inflation rate of no more than 3% – to protect big finance.

Inflation also reduces the value of debts to banks. Their fundamental defense against this is the interest rate on the loans they give. Basically, banks compensate for rising inflation by squeezing more people who owe them money. In Australia, these are mostly workers and small business owners. The combined mortgage balance of the banks, for example, is nearly $3 trillion.

When the Reserve Bank Board of Directors, at its last two monthly meetings, voted to raise interest rates by 0.75%, it did so primarily, not to help deal with rising consumer prices, which are the result of international shocks, but to ensure that mortgage holders do not benefit, at the expense of the banks, from any fall in the real value of their debt.

The current cash rate is 0.85%, but it is expected to almost triple early next year. And the increases are being passed on to commercial banks, whose variable rates for homebuyers are now above 5%. The result is that mortgage payments are increasing by hundreds of dollars a month and likely translating into further increases in rents, which are up more than 9% from last year across the country, according to PropTrack, a company data analysis.

Again, it is the capitalists who find a way to make workers pay for the problems of the system.

The electricity crisis is now about to hit, even though Australia has some of the largest energy reserves in the world. Thousands of people have been hit with a doubling of their electricity bills. Millions more will be affected in the coming months as prices rise by hundreds of dollars per household per year.

It is not because the cost of generating electricity has suddenly increased. This is because virtually the entire energy grid, and the resources used to power it, have been privatized, linked to international markets and exploited for the benefit of big business.

As Josh Lees explores on page 10, gas exporters are reaping windfall profits due to global disruptions, while prices are passed on to consumers here, who in theory own the gas. It is a giant scam that enriches the fossil fuel capitalists at the expense of the standard of living of the working class.

The people who run the PLA aren’t stupid. They know that the government could do a number of things to prevent capitalists in various industries from driving down the standard of living of the working class. It could impose retail price caps and mortgage repayment caps. He could change labor laws to prevent pay cuts. This could secure energy resources and put the power grid back into public hands.

Doing any of these things would require a perspective that people should come before profits. This would require a fight against big business interests. But Labor is in the pocket of the capitalists. That is why it does almost nothing to stop this “class war from above”.

A response to the destruction of living standards must be organized from below, by workers, students and pensioners. If we don’t fight, we will keep losing.

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