Wages Versus Prices

Millions of Americans Pushed to Poverty’s Brink

examiner.com, August 6, 2012
By Jon Rolph

The economy supposedly gained 163,000 jobs in July 2012. For those Americans lucky enough to have work, it may not be enough. Real earnings for the month only gained two pennies, settling at $23.52 an hour. Prices, however, gained all across the board. Everything, including electricity, food, and medical care has outpaced the growth in wages since at least 2002. The monthly increases are quite small, usually less than half a percentage point. When viewed on a yearly basis, however, every commodity in the United States has gone up a minimum of two percentage points.

It is this imbalance between prices and wages that is fueling middle class America’s race to poverty. According to the Census Bureau, the average size of the American household is three persons. Under the current law, the poverty line for the average household is $17,922. This is what is known as the poverty threshold. The threshold is used for all statistics. This differs from the poverty guideline, which is slightly higher at $19,090. The poverty guideline is used for determining eligibility for certain federal programs…

Read the full article at examiner.com.
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