The Myth of Stagnant Wages Explained

Prices are going up, but wages are stagnated. I hear this all the time from the talking heads on TV. But is that accurate?

Let’s dig a little deeper.

Is It Wages or Dollars?

Let’s consider two things.

One your take home pay and two what your take home pay will buy. I’ll use myself as an example of what I mean.

In 1964, I was making $2.00 an hour working at a glass factory in Southern Illinois.

In 2022 dollars, I would have to make $18.05 an hour to have the same purchasing power today that I had then.

Therefore, it would appear that the dollar is worth a lot less today than 58 years ago. Once again, it depends on your point of view.

Compare Dollars and Sense

Let’s look at this from a different perspective.

If you go down to your local grocery store and buy a can of green beans, chances are it costs more than it did last year.

In that example, my dollar will buy fewer green beans than it used to.

But, what about my cell phone?

Can’t I get a better phone, that does ten times more, for the same money today, than I could say … two years ago?

What about computers? A brand-new computer is almost obsolete the minute you take it out of the box.

In most cases, you’ll replace it, not because it’s worn out, but because it’s out of date. When I was growing up, things were built to last.

Now, due of the rapid advancements in technology, you can get a better product, that does more, for almost the same or less than the original.

In the 1990s I sold 35” Glass Picture tube TVs for $700. Today I can by a 70” flat screen, cable ready, with built in Wi-Fi for about the same price.

People line up around the block to be the first to get the new iPhone.

When videocassette recorders hit the market, they were $700 to $800.

Today the CD has sent them the way of the eight tracks, and they are less than $50 and downloadable music and movies is replacing everything.

It sure seems like the dollar can buy a lot more than it used to.

Wages and Buying Power

A dollar of wages only has the buying power I give it. There are necessities I need to maintain my lifestyle.

Medicines, transportation, mortgage, food, utilities, all must be paid. Depending on the price of those items my wages might buy more or less.

Right now, gas is at or above $5.00 a gallon in some places so that’s a hit on my wages. If and when gas prices go down, I’ll get a raise in pay.

And it works that way for all products and services. It’s not how much you make it’s the value that you assign to what you make.

Some Final Thoughts

Are wages stagnant or are you stagnant? You agreed to work for a specific wage.

You agreed to trade an amount of effort on your part for an agreed upon price of what you think your effort is worth.

If you’re unhappy with your wages, there are four things you can do.

1. Ask for a raise or find another job with higher pay.

2. Make yourself more valuable to your current or future employer with more education or skills.

3. Find a side hustle that works with your work schedule.

4. All of the above.

Most of us who are serious writers on Vocal are here for the love of writing but the additional padding to our incomes is nice too.

Not sure I’d write every day just for the fun of it.

It’s not that the money increases it’s that our buying power increases. Most of us live within our means whatever those means are.

The real value of your wage is deciding what to spend your wages on.

Money is a tool. It won’t make your life better it will only make monetary things easier.

It won’t buy good health or bring bad loved ones who have passed on.

Are wages your problem or is what you do with those wages the problem?

Comments always welcome.

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