Compose a 250 words assignment on real wages. Needs to be plagiarism free!
The reason that real GPD per capita has failed to grow during the last four years is because the United s in 2008 entered into a major recessionthat had global repercussions. The 2008 recession has been compared to the Great Depression. The employment rate went up a lot and it only started to drop a few months ago after nearly reaching 10%. Since more people were out of work the real GDP per capita metric was not able to distribute as much money per person since fewer workers were contributing to the formula.
The dilemma with real wages is much different. The real wages of American workers have been held stagnant for decades due to the fact that the cost of living in the United States has been rising at a faster rate than the income generated by the workers. Some of the products that have gone up in price the most are food items, medical expenses, gasoline, and energy costs. The minimum wage salary was held at $5.15 for a long time. In 2007 the government finally made changes to its minimum wage law to gradually increase the minimum wage to eventually reach $7.
25 within three years (Taxpolicycenter). Inflation has been depleting the budgets of many American families for a long time. The main problem with the real wages of American workers is that money is simply not worth what it used to. The purchasing power of money has decreased a lot and as a consequence Americans cannot buy as many goods and services as it used to with the same money.Work Cited PageTaxpolicycenter.org. 2011. “State Minimum Wage Rates, 1983-2011. 25 March 2012.