Market Watch

[2manyrocks]

Yes, we need to be careful with the math. Politicians can get away with being biased and sloppy, but we need to be are smarter than that.

An investment can cost money, but it is not the same as an expense.

CPI is only for "non-investment" expenses. It is simply to be a way to measure the change in non-recoverable spending. i.e. the basic costs of living. Renters don't get to recover any of their rent, so for them their rent is purely a cost - and that is why rental increases are part of the CPI.

When you get into home ownership - or any investment where you have costs versus appreciation - we change over to discussing investments - which is a whole different animal. Although a mortgage eats up a lot of income while it is being paid off, property tends to go up. Home ownership ultimately makes money for the owners. At worst it breaks even. So unlike rent, mortgages pay back. That is why they are not included in CPI calculations. Investing is always optional.

rScotty

That follows the official rationale; however, their method of sampling only .1 percent of rentals in the USA to determine rental rates for 48 million rental units in the USA seems like a poor sampling likely to not accurately reflect true rental rates. They then try to extrapolate "owners equivalent rent" from this "data" which strikes me as also unlikely to reflect the reality of home ownership costs.

 

[edgarrian]

You are right about all of that, and it means that the best time to set wage expectations is at the beginning.
We should all try to include an annual cost of living increase.... on my jobs I tried and didn't always get it, and some jobs I took anyway. But it just makes sense to write cost of living into the initial work agreement.

That's all it takes. Taking the trouble to think about the future. A cost of living increase It is usually a fairly small amount per year... hardly worth the quibble when being hired. Any employer should be giving that to employees anyway - might as well give him the chance to be a good guy.

It is only when you DON'T get that cost of living increase after a few years that it begins to hurt.
So please protect yourself & write it right into the initial job offer.

rScotty

For sure but i think most people do not negotiate anything b.c its uncomfortable. I negotiate everything from the price of my tractor (cash purchase). To car purchasing price without documentation fee, to the extended warranty and extra maintenance. Few things I will not pay for is a documentation fee and if my price for the vehicle is not met. I simply walk out. I have been called back the following day by the salesman who gave in and wanted to sell me at the price i wanted. I turned him down simply b.c he's wasting his time and my time. When we purchased all our appliances. I negotiated those terms as well. TV purchase. Same thing.

So when were talking about people negotiating wages. I just dont think its as common as some think. When a company advertises the hourly pay I wonder how many try to negotiate more. Maybe im wrong but i think its a lost art. Hell I negotiated 4 weeks of vacation right out the gate.

In my line of work. It has slowed b/c companies are needing to get money from equity firms rather than traditional loans from banks. Its delayed some jobs and others have been put on hold. Although i can't complain its been a good year. I install utilities (storm sewer, sanitary, and water lines). But it has slowed down the construction industry.

 

[DK35vince]

Gasoline is only $2.54 where I live.

87 octane is $3.76 here

 

[DK35vince]

Yes. There is a whole lot of Skewed Math out there by people wanting to sell you a "pig in a poke"
Don't fall for their game.

If you want to see how much things have really changed, instead of what the various politicians want you to believe - just go to this site. It's by geeks without an axe to grind either way.

What are you talking about.
The price increases I listed are what our expenses have gone up the last couple years.
Not someone else's skewed math.
Our personal household expense increases

 

[rScotty]

What are you talking about.
The price increases I listed are what our expenses have gone up the last couple years.
Not someone else's skewed math.
Our personal household expense increases

Well, that's my mistake then.
I meant my reply to be to the more general general conversation of cost of living increases, not just one household's personal spending.
I know how that can happen. A few years ago we had a flood. Rebuilding caused our next few years' expenses to be 10 times what our annual expenses had been before. Almost wiped us out.
We did save the Kubota, though.
rScotty

 

[DK35vince]

Well, that's my mistake then.
I meant my reply to be to the more general general conversation of cost of living increases, not just one household's personal spending.
rScotty

Slice it however you want.
Our gas, water, propane, groceries, electric, and other expenses have risen that much the past 2-3 years yet our usage rate has remained the same
Sure as hell not seeing only a 5% increase anywhere around this area

 

[Yander]

 

[plastikosmd]

I only WISH I was paying 8$ more on 100$ spent.

8% lol

(Wife itemizes/ quickbooks EVERYTHING) I could look up our cat litter consumption 2019 vs now, lol. It is quite educational and cuts through the media baloney on “rates.”

They spin their favorite “metrics” to fit their philosophy.

I don't/cant extrapolate my increased costs to anyone else.
Societal averages mean little to me as an individual, only my data/balance sheet matters to me.

 

[Hay Dude]

What are you talking about.
The price increases I listed are what our expenses have gone up the last couple years.
Not someone else's skewed math.
Our personal household expense increases

It‘s funny isn’t it??? listening to the remaining few who actually believe the economy doesn’t suck worse than ever try to convince us everything’s fine.
My wife is working a second job just to make an extra 5k the last 2years to make up for increasing costs of food, fuel, insurance.

”I see better than I hear”

 

[plastikosmd]

^ and some would spin that into an increase in household income, lol