Thursday, March 12, 2015
There's A Decent Chance Your Raise Might Beat Inflation This Year
http://www.huffingtonpost.com/2015/03/11/cfo-survey-wages-rising-finally_n_6848312.html DUE 16 MARCH 2015. What is the "normal" rate of acceptable inflation to create growth in the economy? What is the current inflation rate? Why does the author feel that pay raises will beat inflation? How long have wages been down? If it is true that raises exceed inflation, what are the implications for economic growth in the future and WHY??
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The "normal" rate of acceptable inflation to create growth in the economy is around 3-4%. Currently the inflation rate is at 3%. The author believes pay wages will beat inflation because in certain industries although the inflation rate is 3%, their wages do not match this rate, and are instead lower. Knowing now that in order to hire and retain and employee employers must pay them more, the more pay raises that are given, is more money that is pumped back into the economy (more money to spend) and inflation is lowered as a result of the economic boost. Because of low wages, unemployment has risen which only raises inflation as less people are working. Pay wages have been down since 2009. The implications for economic growth and the future could mean an increase in pay wages. Now that there are less people desperate for employment and can bargain their pay, we may face a growing job sector that although pumps more back into the economy, may demand more. I imagine pay wages will raise from 3 to 4% within the next five years, but subsequent to that wages may be raised higher which could be an upside and downside at the same time. An upside is that more people are given higher pay which boosts the economy, but can be especially crippling to small businesses.
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ReplyDeleteAccording to a recent survey, about seventy percent of companies in the United States this year are going to raise their pay rates by a minimum of three percent. The reason behind this is because there are less people that are looking for work now; therefore, people who are looking for a job will lean towards a higher-paying jobs instead. It was reported that the unemployment rate is at five-and-a-half percent this year. But a different Labor Department reported that the unofficial unemployment rate is greater than eleven percent now. The “normal” rate of acceptable inflation to create growth in the economy is between three and four percent, while the current inflation rate is at about three percent right now. The author feels that pay raises will beat inflation because there are many industries that have lower wage rates, instead of lower inflation rates. Since 2009, pay wages have been very low. Since raises exceed inflation, the implications for economic growth in the future may include an increase in pay wages. People who are looking for a job will search for higher pay wages. Due to this, companies that need help will be “forced” to raise their pay rates.
The normal rate of acceptable inflation is between 3 and 4 percent. The current inflation rate is 3 percent. Pay raises are said to possibly beat inflation because businesses are finally seeing less "slack" in the labor market meaning there are a shrinking number of Americans who are so desperate for work that they can't bargain for better pay. Wages have been low since 2009. In the future we will probably see an increase in pay wages causing people looking for jobs to look towards the ones with higher pay. This could hurt the small businesses.
ReplyDeleteWhat is the "normal" rate of acceptable inflation to create growth in the economy? What is the current inflation rate? Why does the author feel that pay raises will beat inflation? How long have wages been down? If it is true that raises exceed inflation, what are the implications for economic growth in the future and WHY??
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy is between 3% and 4%. The current inflation rate is 3%. The author feels that pay raises will beat inflation because there will be less slack in the labor market and people will need to work more to be able to afford necessities. Pay wages have been down since 2009. In the future, I hope to see a dramatic increase in not just wages in general, but i would like to see a large increase in the minimum wage.
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ReplyDeleteSeventy percent of companies in the United States this year are going to raise their pay rates by a minimum of three percent. The reason being that less people are looking for work, so people who are actually looking for jobs will receive higher pay from not settling for the minimum wage standard because there aren’t many people branching out into the working environment. The report stated that the unemployment rate is at five-and-a-half percent this year, but a different Labor Department stated that the unofficial unemployment rate is greater than eleven percent. The “normal” rate of acceptable inflation to create growth in the economy is between three and four percent, although the current inflation rate is at around three percent. The author feels that pay raises will beat inflation because there are various businesses that have lower wage rates, instead of lowered inflation rates. Businesses are seeing a decrease in the labor market, meaning there is a shrink in the amount of Americans who are looking for pay because of the low pay. Pay wages have been low since 2009. The implications for economic growth in the future may include increases in pay wages, which could hurt businesses if they refuse to raise their pay rates.
ReplyDeleteAfter surveying more than 500 U.S. chief financial officers, according to Duke’s Fuqua School of Business and CFO Magazine, seventy percent of companies in the United States have plans to raise the pay of their workers by at least three percent. With businesses willing to increase the wages that means that less Americans are just taking any job they can get, but now are bargaining the wages for a higher pay. “Given that CFOs expect continued strong employment growth, it is surprising that wage pressures are not even greater,” says John Graham, director of the survey conducted. A ‘normal’ rate of acceptable inflation to create growth in the economy is three to four percent and the current inflation rate is just around the three percent mark. So the author feels that if workers continue to fight and raise wages that “The U.S. is finally entering a new phase in the economic recovery.” The wages have been down ever since the economy crashed in 2008. If all of this works and it is true that raises exceed inflation, to continue this economic growth in the future there are a number of things that need to be done. The wages are going up in industries like consulting, tech, manufacturing, and health care, but staying the same in retail, media, and energy. So something that would help sustain this growth, raises need to be spread across the board to help all workers.
ReplyDeleteThe normal rate of acceptable inflation to create growth in the economy is about three to four percent. according to a survey of more than 500 U.S. chief financial officers conducted in the first three months of the year and released Wednesday by Duke's Fuqua School of Business and CFO Magazine. The current inflation rate is 3 percent. The author feels that pay rises will beat inflation because businesses are finally seeing less “slack” in the labor market. That means there's a shrinking number of Americans who are so desperate for work that they can't bargain for better pay. Wages have been down since 2009. If the wages go up than this could do damage for small businesses.
ReplyDeleteThe “normal” rate of acceptable inflation to create growth in the economy is 1 percent to 4 percent annually. The current inflation rate is 2 percent. The author feels that pay raises will beat inflation because 70 percent of U.S. companies plan to increase pay by at least 3 percent. This statistic was taken from a survey of more than 500 U.S. chief financial officers, conducted in the first three months of the year. This would mean that wages would grow at a faster rate than inflation. According to the author, this is a sign that businesses are seeing less “slack” in the labor market. This also means the there is a shrinking number of Americans that are so desperate that they will settle for low wages. Wages have been down since 2008, when the economy crashed. Although it is true that raises exceed inflation, this only applies to consulting, tech, manufacturing, and health care industries. With the implication of wages not rising across all industries, industries involving retail, media, and energy are still expected to be less than 2 percent. The current unemployment rate is 5.5 percent. Although this makes the future seem bright, when one adds those who work part-time because they can’t find anything better, and marginally attached workers, the future seems somewhat dim. With this calculation, the unemployment rate is 11 percent. This shows that plenty of companies still have the upper hand when it comes to negotiating pay.
ReplyDeleteAccording to the article the normal inflation rate is about three percent. Currently the inflation rate is at two percent. The author feels that raising wages will beat inflation because the slack in labor will decrease if employees feel they are being paid enough for them to actually put more effort into their work, therefor keeping their jobs. With people receiving higher pay, they will not only be able to afford necessities but also luxuries. Based on the graph wages have been down since 2009. If it is true that raises exceed inflation, wages will progressively increase which would be beneficial to employees and the economy but could harm small businesses.
ReplyDeleteSeventy percentage of United States companies plan to raise pay by at least three percent, it was surveyed by more than 500 U.S. chief financial officers in the first three months of the year. With this survey, it is an early sign that businesses are finally seeing less “slack” in the labor market. In other words, that means that there will be a shrinking number of Americans who want to work really badly and they can’t bargain for better pay. “The U.S. is finally entering a new phase in the economic recovery,” John Graham, a finance professor at Fuqua and director of the survey said in a statement. The normal rate of acceptable inflation to create growth in the economy is between three to four percent. According to the author of the article, they feel that pay raise will beat inflation because there are so many companies and industries that have lower wages instead of lower inflation rates. Pay wages have been low since 2009. Many people are searching for jobs that are higher pay wages, which means if the wages increase then that could damage small businesses.
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy is 3% or highrer. The current inflation rate is about 2%. The author feels that pay raises will beat inflation because,businesses are finally seeing less “slack” in the labor market. That means there's a shrinking number of Americans who are so desperate for work that they can't bargain for better pay and for the first time in a while, a lot of businesses are finding that in order to attract and hold on to employees they need to actually pay them more. wages have been down for 6 years. If it is true that raises exceed inflation, the implications for economic growth in the future will be pay is going up in consulting, tech, manufacturing and health care but wage growth is still expected to be less than 2 percent in retail, media and energy, according to the study, But if the wages go up in the future it may do harm to small businesses .
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy is between 3 -4%, with the current inflation rate at about 2%. After a survey by more than 500 U.S. chief financial officers in the first 3 months of this year, it was decided that 70% of United States companies will raise pay by at least 3%. “The U.S. is finally entering a new phase in the economic recovery,” John Graham, a finance professor at Fuqua and director of the survey said in a statement. This is a sign that business market is seeing less "slack" in the labor market. The author feels that pay raises will beat inflation because since 2009 pay wages have been very low and there are many industries that have lower wage rates, instead of lower inflation rates. Since raises exceed inflation, the implications for economic growth in the future may include an increase in pay wages. Companies still have the upper hand when it comes to negotiating pay and even those with a part time job are still considered "unemployed," because they can't find anything better, is way higher at 11 percent.
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy is at least three percent. The current inflation rate is at two percent. The author believes that the pay raises will beat inflation because businesses are finally seeing less slack in the labor market. Which means that there is a shrinking number of Americans who are desperate for work that they can't bargain for better pay. By looking at the graph, wages have been down since 2009. The implications for economic growth in the future could lead to an increase in the minimum wage which could harm small businesses.
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy is 3% or more. The current inflation rate is at 2%. The author feels that pay raises will beat inflation because pay raise will beat inflation because there are so many companies and industries that have lower wages instead of lower inflation rates. Wages have been down since 2009. If it is true that raises exceed inflation, the raise in the minimum wage could harm small businesses if they cant afford to pay or hire workers.
ReplyDeleteThere are current signs that slow-moving economic recovery may finally be occurring. About the “normal” rate of acceptable inflation to create growth in the economy is ranging 3%. Businesses have come to the conclusion that in order to attract and hold employees is to raise their pay. Though it does not seem like much, there is going to be an approximate 3% raise to pay checks; it’s been long since the wages grew faster than the rate of inflation, which is about 2%. According to the St. Louis Fed. Wage chart, the growth of the U.S. fell after the crash in 2008, there was a staggering cut in wages for all workers. There has been a recovery plan set in place for a while now, where pay is drifting around 2% per year, matching the rate of inflation. With this rise in pay, the rate is going to exceed that rate and beat inflation. Though there is an expected wage increase, the increase is not going to be felt in all industries. The pay is going up in consulting, tech, manufacturing and health care; the wages are still lower than 2% in retail, media and energy. The official unemployment rate is pretty low at 5.5%, but this increase in pay will help make that percentage fall even lower. Because workers are getting paid more, it could help boost the economy, but smaller business could be at risk since employees are looking for that higher pay and they would be pressured to give it to them.
ReplyDeleteThe normal rate of acceptable inflation is between 3-4%. The current rate is at 3%. Because they see less "slack" in the labor market. Meaning there's less Americans desperate for work that they can't bargain for better pay. They are entering a new phase in economic recovery. The pay wages have been down since 2009. In the future we will find pay wages increase, and more people looking for jobs with higher pay. Possibly hurting some businesses.
ReplyDeleteAccording to a recent survey, about seventy percent of companies in the United States this year are going to raise their pay rates by a minimum of three percent. With this survey, it is an early sign that businesses are finally seeing less slack in the labor market. The reason behind this is because there are less people that are looking for work in today's society; so therefore, people who are looking for a job will lean towards a higher-paying jobs instead. “The U.S. is finally entering a new phase in the economic recovery,” John Graham, a finance professor at Fuqua and director of the survey said. But a different Labor Department reported that the unofficial unemployment rate is greater than eleven percent now. The normal rate of acceptable inflation to create growth in the economy is between three to four percent. The author feels that pay raises will beat inflation because there are many industries that have lower wage rates, instead of lower inflation rates. Pay wages have been low since 2009. Many people are searching for jobs that have higher pay wages, which means if the wages increase then that could damage the small businesses.
ReplyDeleteThe “normal” rate of acceptable inflation to create growth in the economy is between 3 and 4 percent. The current inflation rate is at about 2%. After a survey with more than 500 chief financial officers in the first three months of 2015, it was said that 70% of all United Staes companies would raise pay by at least three percent . John Graham, a finance professor at Fuqua and director of the survey said in a statement, “The U.S. is finally entering a new phase in the economic recovery.” This shows us that the business market is not seeing as much laxity in the labor market. The author feels that pay raises will beat inflation because ever since 2009, pay wages have been very low and now there are many industries that have lower wage rates instead of inflation rates. So because raises exceed inflation, the implications of economic growth in the future may include an increase in pay wages. Even thought this is all happening now, companies still have more say when it comes to negotiating pay. People with part time jobs are still considered unemployed because they cannot find other jobs and the rate for them is at 11 percent.
ReplyDeleteThe “normal” rate of acceptable inflation to create growth in the economy is 2%, of which is also our current inflation rate. The author believes that pay raises will beat inflation because it is a sign that the “slack” in the labor force is fading. Meaning that companies are trying to keep their employees. Wages have been down since 2010 even though the economy crashed in 2008.
ReplyDeleteIf it is true that raises exceed inflation, then it will mean more growth for the economy. Since higher wages will increase spending and in turn, allow the economy to grow.
This article is about a chance that a person's raise may beat the rate of inflation. According to a survey of more than 500 U.S. chief financial officers conducted in the first three months of the year and released Wednesday by Duke's Fuqua School of Business and CFO Magazine, 70% of the United States companies plan to raise pay by about three percent on average this year. This shows that many companies and/or businesses are not feeling as tight as they used to be and shows that there are a number of Americans that are desperate for work and can't bargain for better pay. Currently, the normal rate of acceptable inflation in order to create growth in the economy is around three to four percent. Currently, the inflation rate is at three percent. According to John Graham, The U.S. is finally entering a new phase in the economic recovery. "Given that CFOs expect continued strong employment growth, it is surprising that wage pressures are not even greater.” The article states, the St. Louis Fed. Wage growth in the U.S. fell off a cliff after the economy crashed in 2008. And though the recovery’s been in place for a long time, pay's gone absolutely nowhere, drifting along at around 2 percent per year, roughly matching inflation. Wages have been down since around 2009. If it is true that raises exceed inflation, some of the implications for economic growth in the future are that many people will be searching for only well paid jobs that have a significant raise which will make it a lot more difficult for other companies to keep their pay at a minimum. Nobody will be interested in applying for a job that has a low raise rate. Many of the companies will be forced to raise their rate in order to ensure that they have a significant number of employers that are happy to work.
ReplyDeleteAccording to the article more than seventy percent of companies in the United States this year are going to increase their pay rates by a minimum of three percent.Being that less people are looking for work, so people who are actually looking for jobs will receive higher pay from not settling for the minimum wage standard because there isnt many indiviuals seeking out into the work environment. The author stated in the report that the unemployment rate is at five-and-a-half percent this year, but a different Labor Department stated that the unofficial unemployment rate is greater than eleven percent. The article says that the “normal” rate of acceptable inflation to create growth in the economy is between three and four percent, although the current inflation rate is at around three percent. Although pay raises will beat inflation because there are various businesses that have low wage rates, instead of lowering inflation rates. Businesses are seeing a decrease in the labor market, meaning there is a shrortage in the amount of Americans who are seeking for pay because of the low pay. Pay wages have been at a low from as far as 2009. From an economic stand point the economic growth in the future may include increases in pay wages, which could be detrimental to businesses if they refuse to raise their pay rates.
ReplyDeleteThe normal rate of inflation that is good for the economy is 3-4%. Currently the inflation rate is at 3%. The reason the author believes pay wages will beat inflation is because some industries have an inflation rate of 3%, and their wages do not match this rate, instead they are lower. Pay wages have been down since 2009. The implications for economic growth and the future could mean an increase in pay wages. Because less people are desperate for employment and can now bargain their pay, we have to make sure that industries will meet this demand for more income based upon quality of worker
ReplyDeleteCARLIE LIBRIZZI
ReplyDeleteAccording to a recent survey, about seventy percent of companies in the United States this year are going to raise their pay rates by a minimum of three percent. The reason behind this is because there are less people that are looking for work now; therefore, people who are looking for a job will lean towards a higher-paying jobs instead. It was reported that the unemployment rate is at five-and-a-half percent this year. The report stated that the unemployment rate is at five-and-a-half percent this year, but a different Labor Department stated that the unofficial unemployment rate is greater than eleven percent. The “normal” rate of acceptable inflation to create growth in the economy is between three and four percent, although the current inflation rate is at around three percent. The pay is going up in consulting, tech, manufacturing and health care; the wages are still lower than 2% in retail, media and energy. The official unemployment rate is pretty low at 5.5%, but this increase in pay will help make that percentage fall even lower. Because workers are getting paid more, it could help boost the economy, but smaller business could be at risk since employees are looking for that higher pay and they would be pressured to give it to them.
Seventy percent of U.S. companies plan to raise pay by at least 3 percent, on average, this year. This is an early sign that businesses are finally seeing less “slack” in the labor market. The "normal" rate of acceptable inflation to create growth in the economy is 3% and 4%. Right now the current inflation rate is about 2%. The author states "For the first time in a while, a lot of businesses are finding that in order to attract and hold on to employees they need to actually -- gasp! -- pay them more." “The U.S. is finally entering a new phase in the economic recovery,” John Graham, a finance professor at Fuqua and director of the survey said in a statement. "Given that CFOs expect continued strong employment growth, it is surprising that wage pressures are not even greater.” The author feels that pay raises will beat inflation because ever since 2009, pay wages have been very low and now there are many industries that have lower wage rates instead of inflation rates. Wage growth in the U.S. fell off a cliff after the economy crashed in 2008. If it is true that raises exceed inflation, the raise in the minimum wage could harm small businesses if they cant afford to pay or hire workers.
ReplyDeleteThe normal rate of acceptable inflation to create growth in an economy is between 3 and 4%. The current inflation rate is 3%. Pay raises will beat inflation because workers will look for work with adequate pay rather than settling for minimum. Wages have been low since 2009. If raises exceed inflation small businesses could suffer. They are not financially equipped to pay their workers much higher than minimum wage. The bigger business could benefit by taking those workers, because an extra $3 an hour won't dent their wallet.
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy is between 3% and 4%. Currently, the inflation rate is at 3%. There are less people that are looking for work so now people who are looking for a job will lean toward jobs that pay more. The author feels that pay raises will beat inflation because there are so many industries that have lower wage rates,instead of lower inflation rates. The wages have been down ever since 2009 when the economy crashed. The implications for economic growth and the future could mean an increase in pay wages. People who are looking for jobs, will look for higher wages which could lead to companies that are in need of help having to raise there wages.
ReplyDeleteThe normal rate of inflation to keep the economy afloat is 4% the economy has to constantly be fed money to really prosper. Wages are going to beat inflation because low class people having money to spend is much more important then raising prices. We need a push to spend more money rather then make people spend less by inflation. 70% of companies are going to raise minimum wage but people can not be fooled because companies will never do anything unless it benefits them in some way shape or form. Wal-Mart recently raised wages so people will start shopping at there store again. They were losing customers to other companies who care about their employee.
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy is between 3% and 4%. The current inflation rate is 3%. The author believes that the pay raises will beat inflation because businesses are finally seeing less slack in the labor market.Wages have been low since 2009.Many people are searching for jobs that are higher pay wages, which means if the wages increase then that could damage small businesses.
ReplyDeleteThe normal rate of acceptable inflation to create growth in the economy is between 3% and 4% and current inflation is at 2%. The author feels that pay raises will beat inflation because 70% of U.S. companies plan to increase pay by at least 3 percent. This statistic was taken from a survey of more than 500 U.S. chief financial officers, conducted in the first three months of the year. By looking at the graph, wages have been down since 2009. The implications for economic growth in the future could lead to an increase in the minimum wage which could harm small businesses. Many people are searching for jobs that have higher pay wages, which means if the wages increase then that could damage the small businesses.
ReplyDeleteThis year seventy percent of U.S. companies plan to raise pay by at least 3 percent. The normal rate of acceptable inflation to create growth in the economy is 3-4 percent. The current inflation rate is 3 percent. Even though the inflation rate is 3 percent the author believe that pay raises will beat inflation because many businesses are finally seeing less slack in the labor market. Wages have been low since 2009. In the future pay wages will be much higer making it harder for businesses to pay their employees the expected pay wage.
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy is between three and four percent. The current inflation rate is at 3%. The author feels that pay raises will beat inflation because more workers will work for a proper pay, rather than the current wage. Wages have been low since 2009. Implications for economic growth in the future would be a raise in wages. With less people looking for work, there is more money available to the workers.
ReplyDeleteThe “normal” rate of acceptable inflation to create growth in the economy is between three and four percent. Today, the inflation rate is at about three percent. The author feels that pay raises will beat inflation because most industries have lower wage rates, rather than lower inflation rates. Wages have been down since 2009. Since raises exceed inflation, the implications for economic growth in the future may mean an increase in pay wages. People will begin to realize that they can work for someone who pays more than many companies and will look for jobs elsewhere. Companies that need more employees will be “forced” to raise their pay rates in order to find people to work for their companies.
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy is between 3% and 4%. The current inflation rate is 3%. The author feels that pay raises will beat inflation, because 70% of U.S. companies plan to increase pay by at least 3 percent. "For the first time in a while, a lot of businesses are finding that in order to attract and hold on to employees they need to actually -- gasp! -- pay them more." Less people are also looking for jobs now which makes them lean toward getting a job that has a higher pay. Wages have been down ever since 2009. The implications for an economic growth could be an increase in pay wages will probably been seen more in the future since people are leaning toward getting a higher paying job, which could also damage small businesses.
ReplyDeleteThe normal rate of acceptable inflation to create growth in the economy is around 3-4%. The current inflation rate is at two percent. The author feels that pay raises will beat inflation because there are many industries that have lower wage rates, instead of lower inflation rates. Since 2009, pay wages have been very low. The implications for economic growth in the future may include increases in pay wages, which could hurt businesses if they refuse to raise their pay rates.- Sam Mohammed
ReplyDeleteWhat is the "normal" rate of acceptable inflation to create growth in the economy? What is the current inflation rate? Why does the author feel that pay raises will beat inflation? How long have wages been down? If it is true that raises exceed inflation, what are the implications for economic growth in the future and WHY??
ReplyDeleteIn today's economy, the normal rate of acceptance inflation is 3-4%. This is an appropriate rate at which the economy can operate normally. Coincidentally, the current inflation rate is 2%. The author feels that pay raises will beat inflation in the future because companies in the U.S. soon plan to increase their employees pay by at least 3%. Wages have been on the lower side since about 2009 right after the recession hit. In the future, if employers pay their employees more money, it will make it eventually make it harder for all employers to pay their employees just as much, damaging small businesses.
The "normal" rate of acceptable inflation to create growth in the economy is around three percent. The current inflation rate is just around this three percent. The author believes that if workers continue to fight and raise wages stating that “The U.S. is finally entering a new phase in the economic recovery.” Ever since 2009, pay wages have been very low and now there are many industries that have lower wage rates instead of inflation rates.Since raises exceed inflation, the implications for economic growth in the future may include an increase in pay wages. People will look for jobs that give higher wages causing competition among employers.
ReplyDeleteThe normal rate of acceptable inflation is between 3 and 4 percent. The current inflation rate is 3 percent.The author believes pay wages will beat inflation because in certain industries although the inflation rate is 3 percent, their wages do not match this rate, and are instead lower. Since 2009, pay wages have been very low. The implications for economic growth in the future may include increases in pay wages, which could hurt businesses if they refuse to raise their pay rates.
ReplyDeleteThe normal rate of acceptable inflation to create the growth of economy ranges at about three percent. While the current inflation rate is around two percent. The author feels that the pay raise will benefit inflation due to believeing that a lot of businesses are finding that, in order to attract and hold on to employees, they need to a pay them more. On top of that, she supports the idea that, the U.S. is finally entering a new phase in the economic recovery. Wages have been down since 2008, when the economy crashed and the U.S. fell from there. And though the recovery’s been in place for a long time, pay's gone absolutely nowhere, drifting along at around 2 percent per year, roughly matching inflation. The implications for economic growth in the future is that people will search for higher wages, and expect more compared to now. And as a result, it may hurt smaller businesses that may not be able to afford employee wages. The official unemployment rate is low, at 5.5 percent. However, another Labor Department unemployment measure, which includes workers who aren't technically "unemployed," like those who are working part-time because they can't find anything better, is way higher at 11 percent.
ReplyDeleteApproximately three to four percent is considered the "normal" rate of acceptable inflation used to kickstart economic growth; the current rate of inflation is three percent. According to the article, a survey was taken of more than 500 U.S. Chief financial officers by Duke's Fuqua School of Business and CFO Magazine. Approximately seventy percent of companies in the U.S. have plans to raise their worker's pay by at least three percent. The author of this article believes that pay raises should beat inflation due to a new lack of "slack" in the labor market. This suggests that there are fewer Americans desperate for work and attempting to bargain for better wages. Wages have been down since the economy crash in 2008, where there were large, erratic changes in the hourly average earnings of ALL employees. If these raises do exceed inflation, there are extremely positive implications for future economic growth. It allows positive growth for those in a workplace with increasing wages but those whom work under corporations/companies that refuse to pay employees more may definitely suffer; in turn, losing workers and business.
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ReplyDeleteThe normal rate of acceptable inflation is between 3 and 4 percent. The current inflation rate is 3 percent. Pay raises are said to possibly beat inflation because businesses are finally seeing less "slack" in the labor market meaning there are a shrinking number of Americans who are so desperate for work that they can't bargain for better pay. Wages have been low since 2009. In the future we will probably see an increase in pay wages causing people looking for jobs to look towards the ones with higher pay. This could hurt the small businesses.
The “normal” rate of acceptable inflation to create growth in the economy would be from 3-4%. The current inflation rate would be 3%. The author feels that pay raises will beat inflation because the labor market is promising less slack then before. Now that people are out looking for jobs, increased wages will lure them in to different businesses. Wages have been down since 2009 for about 6 years now. If the raising of wages exceeds inflation, small businesses can go out of business since they may not be able to afford higher wages; however, bigger businesses will have a raise in the number of employees. More people will be out and about looking for jobs with higher paying wages.
ReplyDeleteThe normal acceptable growth rate on inflation is between3 and 4 percent. Our current inflation rate is 3 percent, but the author believes that pay wages will beat the inflation since the wages are, in most industries, lower then this rate. Since 2009 the wages have been recognizably lower then in years before. Thankfully we are starting to see a rise in out pay wages once again. If this is true that means that our economy will keep getting better, which makes everyone more willing to spend money.
ReplyDeleteThe "normal" rate of acceptable inflation is between 3 and four percent, which helps create growth in the economy. The current inflation rate is about two percent, and the Us is planning to raise wages 3 percent. This would be a rare occurrence (the inflation rate being lower than the raise in wages) and the author feels as though the pay raises will finally "beat" inflation. Wages have been down since 2008, and are slowly on the rise again. If the raises increase and inflation continues to stay at the same rate, we may start to actually have economic growth. This would be a long and tedious process though. As long as these changes happen gradually and not dramatically, we won't see many changes.
ReplyDeleteAccording to the article, the current rate of inflation is about 2%. The "normal" rate of acceptable inflation to create growth in the economy is between 3 and 4 percent. The author of the article feels that pay rises will beat inflation because this is is the first time in a long time where wages grew faster than the rate of inflation, instead of at the same rate. Wages have been down since the 2008 recession. Since then, "pay's gone absolutely nowhere, drifting along at around 2 percent per year, roughly matching inflation.", as said in the article. If it is true that raises exceed inflation, then in the future, we may see minimum wage raising substantially, thus growing the economy, but hurting small businesses. More money is an incentive for people to GET jobs and KEEP them, thus, growing the economy.
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy is around 3-4 percent. As of right now, the current inflation rate is 3 percent. The reason the author believes pay wages will beat inflation is because industries have an inflation rate of 3 percent, and most of the wages were lower and had no match. Since 2009. Wages have been lowered when the economy crashed. If these raises do exceed inflation, there will be implications for future economic growth. People then will look for a job with higher pay wages.
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy is around 3-4%. Currently the inflation rate is at 3%. The current inflation rate is 2 percent. The author believes pay wages will beat inflation because in certain industries although the inflation rate is 3%, their wages do not match this rate, and are instead lower. Pay wages have been down since 2009. Since raises exceed inflation, the implications for economic growth in the future may include an increase in pay wages. People who are looking for a job will search for higher pay wages. Due to this, companies that need help will be “forced” to raise their pay rates.
ReplyDeleteFor this year seventy percent of companies in the United States plan to raise their employees' pay. The normal rate of inflation to create growth in the economy is between three to four percent. Today, the inflation rate is around two percent. The author believes pays raises will beat inflation because pay wages are very low since 2009 and industries have lower wage rates. Since raises are exceeding inflation, there might be an increase in pay wages. There is a chance that minimum wage will increase in the future, but an increase in minimum wage will hurt small businesses.
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ReplyDeleteThe “normal” rate of acceptable inflation to create growth in the economy has been three to four percent. Our current inflation rate is that of three percent. The author feels that pay raises will beat inflation because seventy percent of U.S. companies have planned to raise their pay up to at least three percent. Business have found that by paying their employers more they would stay longer. Since 2009 the wages have remained 2009, and until now will finally come back up ad rise. The only implication for economic growth is the fact that small business will eventually be affected because of the increase in pay. Many small business won’t have the sufficient high pay to increase their wages.
ReplyDeleteThe normal inflation rate is around 3-4% and currently we are at 2% while wages are going up by 3%. The author believes this will help the economy because with a higher minimum wage incentive, employers can expect their employees to stay at the job longer. Wages have been down for the past 6 years, and the author thinks that with them going up we may finally be on the road to a recovering economy. In the future we may see very high wages and little to none unemployed persons. This competition for a good pay may run some businesses out but it will also help those who are desperate for money.
ReplyDeleteThe normal rate of acceptable inflation is between 3 and 4 percent. The current inflation rate is 3 percent. The author feels that pay raises will beat inflation because ever since 2009, pay wages have been very low and now there are many industries that have lower wage rates instead of inflation rates. So because raises exceed inflation, the implications of economic growth in the future may include an increase in pay wages. Even thought this is all happening now, companies still have more say when it comes to negotiating pay. People with part time jobs are still considered unemployed because they cannot find other jobs and the rate for them is at 11 percent.
ReplyDeleteFrom Huffingtonpost.com, seventy percent of U.S. companies plan to raise pay by at least 3 percent, on average, this year, according to a survey of more than 500 U.S. chief financial officers conducted in the first three months of the year and released Wednesday by Duke's Fuqua School of Business and CFO Magazine.The "normal" rate of acceptable inflation to create growth in the economy has been from three to four percent. Our current inflation rate here in the U.S. is three percent. The author feel that this change would beat the inflation rate by having businesses finding out that by paying these workers more than before, increasing their wages can make them stay working longer. Pay wages have been down for almost 6 years, since 2009, and the author firmly believes that America finally takes its step into recovering its economy. The implications for economic growth in the future may include an increase in wages if pay raises can exceed the inflation rate. People who are looking for a job will search for higher pay wages. Eventually, companies would need to raise their pay raises in order for people to apply for work. This may affect some businesses greatly but at the same time, it can enhance the economy as well.
ReplyDeleteAfter a survey of more than 500 U.S Chieg Financial Officers, it was found that about seventy percent of U.S. companies plan to raise pay by at least 3 percent, on average, this year. This will create less "slack" in the market, meaning that workers in certain industries will have more of a say in what their pay is. The "normal" rate of acceptable inflation to create growth in the economy is between three and four percent. However, according to the author of the article, pay raise is expected to beat inflation because there are so many companies and industries that have lower wages instead of lower inflation rates. Pay wages have been low since 2009. If the raises exceed inflation, then we can expect a couple of things to happen: 1) The economy will grow and people will be getting higher paying jobs and 2) lower paying jobs and small businesses will struggle to find workers.
ReplyDeleteThe normal rate of acceptable inflation to create growth in the economy is about three to four percent.According to the survey,500 United states chief financial officers conducted within the first 3 months of the year. The current inflation rate is 3%. In my opinion I believe the author feels that pay raise will beat inflation due to the fact that businesses are finally seeing less "slack" In the labor market. Which means that the number of Americans who are desperate for a job is shrinking.since 2009 wages have been down. If wages increase small businesses will be hurt by it.
ReplyDeleteThe "normal" rate of inflation in order to have our economy grow is 3-4%. The current inflation rate is at about 3%. The author feels that pay raises will beat the inflation because higher minimum wage causes workers to want to stay in the jobs which then they have an income and they tend to spend money more. Wages have been down since 2009 which is 6 years. With the intended thoughts if they continue people will tend to look for better paying jobs.
ReplyDeleteThe reason being that less people are looking for work, so people who are actually looking for jobs will receive higher pay from not settling for the minimum wage standard because there aren’t many people branching out into the working environment. The report stated that the unemployment rate is at five-and-a-half percent this year, but a different Labor Department stated that the unofficial unemployment rate is greater than eleven percent. Although it is true that raises exceed inflation, this only applies to consulting, tech, manufacturing, and health care industries. With the implication of wages not rising across all industries, industries involving retail, media, and energy are still expected to be less than 2 percent. The current unemployment rate is 5.5 percent. Although this makes the future seem bright, when one adds those who work part-time because they can’t find anything better, and marginally attached workers, the future seems somewhat dim.
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy 3-4%. Currently the inflation rate is at 2%. The author feels that pay raises will beat inflation because since the official unemployment rate is at low of 5.5 percent, that means there will be a shrinking number of Americans who are desperate for work that they try to find anything that they can do to earn a decent income. And according to the author, "For the first time in a while, a lot of businesses are finding that in order to attract and hold on to employees they need to actually -- gasp! -- pay them more," which means business holders are also desperate to keep their employees. According to the article, workers who aren't technically "unemployed", part-time workers, can't find anything better to do, is double the percent of the official unemployment rate, which is at a whopping 11 percent. So we still have to pick up the slack in our industries if we want to bring up our nation's economy.
ReplyDelete3-4% is considered the normal rate of inflation to create growth in the economy. At this moment inflation is at a rate of 2%. Emily Peck the author of this post feels that pay raises will run higher or beat the inflation. The unemployment rate is lower then 6%. Combined with the fact that businesses are paying their workers more money people aren't as desperate to take jobs as they were a few years back. We still haven't taken care of the problem because we still have part-time workers to deal with. They make up 11% of the unemployment rate since they are counted on it but we're are in the beginning stage of economic recovery.
ReplyDelete-Raymond Tilus
70% of companies in the United States this year are going to raise their pay rates by a minimum of three percent. The reason being that less people are looking for work, so people who are actually looking for jobs will receive higher pay from not settling for the minimum wage standard because there aren’t many people branching out into the working environment. The report stated that the unemployment rate is at five-and-a-half percent this year, but a different Labor Department stated that the unofficial unemployment rate is greater than eleven percent. The “normal” rate of acceptable inflation to create growth in the economy is between three and four percent, although the current inflation rate is at around three percent. The author feels that pay raises will beat inflation because there are various businesses that have lower wage rates, instead of lowered inflation rates. Businesses are seeing a decrease in the labor market, meaning there is a shrink in the amount of Americans who are looking for pay because of the low pay. Pay wages have been low since 2009. The implications for economic growth in the future may include increases in pay wages, which could hurt businesses if they refuse to raise their pay rates.
ReplyDeleteAlmost seventy percent of companies in the United States this year are going to raise their pay rates by a minimum of three percent. Currently the inflation rate in the United States is 3 percent. With the implication of wages not rising across all industries, industries that involve retail, media, and energy are still expected to be less than 2 percent. The normal acception rate is 3 to 4 percent. Pay raises are said to possibly beat inflation because businesses are finally seeing less "slack" in the labor market meaning there is a decreasing number of Americans who are extremely desperate for work that they can't bargain for better pay. Wages have been down since 2009. Although if wages rise that will only damage small businesses.
ReplyDeleteThe "normal" rate of acceptable inflation to create growth in the economy is 3%.
ReplyDeleteThe current inflation rate is 2%.
Why does the author feel that pay raises will beat inflation? How long have wages been down? Though the recovery’s been in place for a long time, pay's gone absolutely nowhere, drifting along at around 2% per year.
If it is true that raises exceed inflation, the implications for economic growth in the future are wage growth is still expected to be less than 2 percent in retail, media and energy, and unemployment rate is high at 11%.
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ReplyDeleteThe normal rate of inflation is 3 percent. While the current inflation rate is 2 percent.Wages are growing faster than the inflation rate. The crash that took place in 2008 has kept our inflation rate at 2 percent.Businesses are finding that in order to maintain employees, wages must increase. As wages grow in areas like consulting, tech, manufacturing and health care, the increase in wages is thought to be less that 2 percent in areas like retail, media, and energy. Those industries haven't been doing so well. Though unemployment is at a 5.5 percent, it is technically at 11 percent.
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