Do the math

So, our "overall" inflation rate is 2% - higher than expected and actually increasing sharply every month here in the US. Food and energy, which have no voice in the "official" inflation rate increased 2.5% and 3.3% respectively - all these prices are based on a year 2013 - 2014 ending in May.

Considering that payrolls (what people are making) only increased by 1.9% over this same period, it doesn't take an idiot to see there is a problem. People are losing their buying power. As one economist predicted, unemployment rates are dropping because companies are paying less for their workers comparatively. They are not even paying them the same amount, they are actually paying less. Perhaps this is why the poor people are getting poorer and the rich people have actually increased their wealth over the past several years.

I will say that since Congress hasn't voted itself a pay raise since 2009, it is close to putting itself on par with inflation. In 2009 it made 174,000 and that is the amount of inflation from 1914 until 2014. Yes, they were a little ahead of the rate then. However, they did propose pay raises that would have kept them well ahead and making 186,000 if they hadn't down voted them.

My husband hasn't had a raise in years and he doesn't get a vote on it. In fact, this year he had a $1200 decrease in salary because his boss decided to stop giving the May bonuses that replaced salary increases. Instead of making 2% more to keep up with inflation, this year we will be making 4% less. Too bad we can't take 4% away from Congress salaries - then perhaps our economic problem would get truly fixed.