Tuesday, July 30, 2013

The BIG Squeeze of the American Wage Earner

These two charts say it all, personal income growth is crashing, while the cost of renting a house is climbing. Not a good combination. Rents are climbing because there IS price inflation thanks to Fed money printing. Personal income is declining thanks to government regulations which make it more risky and expensive to hire workers.

(Charts via ZeroHedge)


  1. While I don't disagree that prices are increasing due to monetary inflation, I also think that the rise in rents is also due to lower levels of home ownership, and that this means there is more demand for rentals, thus bidding up rental prices.

    1. If home ownership is less, that means there are more homes to rent. Prices aren't impacted by the ownership factor, it's the Fed.

  2. All governments who gain control over money be it metallic coins or paper currency, eventually resort to coin clipping or counterfeiting in order to extract more wealth from the public. Money is too important a good to allow a monopoly, public or private to have control over it.