In his podcast, Peter Schiff talked about the unprecedented collapse in real incomes and how it will trickle down through the economy.
Year-over-year, average hourly wages for production and nonsupervisory employees were up 6.7% in March. That sounds great – until you factor in inflation.
With CPI at 8.5% (according to official government numbers), real wages for these workers have dropped nearly two percent. Their bigger paychecks aren’t even covering rising prices.
Overall, wages are rising at around 4 to 5%. That means in aggregate, real wages are dropping even faster.
Peter says it’s even worse than that.
"The wage numbers are real. Those are actual numbers because they’re easy to measure. There is no hedonics. There is no substitution. The wage increases are accurate. It’s the price increases that are not. Because if inflation is actually 17 or 18%, not 8.5% but wages are only growing by four or five percent, real incomes are collapsing at an unprecedented rate.”
- Source, Schiff Gold
