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What’s happened to the “Middle Class”? According to the BLS cumulative inflation since 1970 is 500+%!

What’s happened to the “Middle Class”?
According to the BLS cumulative inflation since 1970 is 500+%!

This is a series of Talent Stories from 2017 you may have missed.
I find much of this very disturbing, even shocking.
What are your thoughts??

According to the BLS cumulative inflation since 1970 is 500+% (more than 10% per year).
It now takes $641.73 to buy what $100 did in 1970, or 541.73% inflation!
This is not the Consumer Price Index (CPI) % we all hear and read about.
In my validity check, economists agree.
Most have pegged inflation at 10% ± since the ‘50s.

Is an inflation rate of 542% shocking to see on a page?

Unfortunately, the Harvard Business Review reports wages have only increased                                                                                       ± .2% per year (12.5% actual) for the same period of time.

This explains much of the erosion of the middle class….
People simply can’t afford middle class anymore!

 

The government reported CPI has been a result of statistical manipulation for half a century.
This is done to make inflation look acceptable and keep the CPI low, the basis for most wage increases;

However, THIS AS A HUGE U.S. TALENT/PEOPLE (WORKER) PROBLEM!!

Corporate profits and U.S. worker productivity are at historical all-time highs.
Yet, Economic Policy Institute reports indicate working wage increases have been systematically negated for profits!
The churn created by low wages and lack of opportunity costs the U.S. $1½ – 2 Trillion (2012 dollars) per year; and,
These statistics pertain to all but certain STEM and upper most corporate leadership, not just first line people.
This results in more and ever increasing restriction on budgets, wages, benefits, talent attraction and retention.
How much more profitable could businesses become if they really questioned the current employment status quo?

Washington Search Partners takes the time to learn who you are and your organization’s unique cultural fit.
We provide results quickly and provide a one year employment guarantee of our candidates you hire.
We can help you attract and retain the best people organization wide.
We can help you make more profit by making your talent vision and strategy a reality.

Job dissatisfaction or churn isn’t always about $$, however, increasing wages and benefits is decades overdue.

Next: Google has a solution for the lack of talent?

John Hagen

With over 30 Years of high-level engagement he leads executive recruitment for Retail (Start-up, Brick and Mortar, e-, Holding, Development, Conglomerate); Human Resources/Culture/Talent/Acquisition; VC / PE & Banking Investment and Development; Warehousing, Shipping/Logistics/Fulfillment/Transportation; Manufacturing (apparel, consumer goods, decor, electronics, high-tech, industrial durable and non-durable0); Real Estate Development Management and Business Services industry segments. He has headed high-level consulting programs to industry and the highly confidential recruitment of hundreds of C-level, divisional, regional leaders supporting the various industries within his corporate and company operations. He has partnered with U.S., Canadian, LATAM, EU and Asian brands in critical external executive search assessments for VP levels executives and above. Confidentiality, honesty, integrity, innovation, humor and a laser like sense of cultural match are the hallmarks of his work.

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