The latest published inflation rate, shows that the cost of consumer goods rose 2.7% over the last year. Historically a 2.7% inflation rate is a great number. However I wonder if that includes things like phone bill payments. I am not an economist but just looking at how much we pay in our phone bills over the past 5 years as cell phones have risen in popularity is astonishing. Consider that the average home phone bill was probably $50 and now most people use cell phones as their primary means of contact and that these bills are now at least $100 depending on your contract. This represents a 100% increase.
I have a family of four and my kids are now 10 and 12 years old. Nobody told me I had to get them a phone, but I did as we no longer have a home phone. Our phone bill for 4 phones is approximately $250/month or nearly $3,000 per year. This is a huge expense, and as I type this out I actually feel sick knowing that this is 5x what I paid only 5 years ago. Granted our phones do more than just make phone calls. They provide internet access, games, texting etc. But are all those things really worth 10% of the average American income. I don't think so. And as soon as the contracts are up I am cutting costs dramatically. With the internet, I can have a free home phone through the internet. I need to show my kids what is worth paying for. When I was a kid, we used a payphone and parents didn't worry as much. Today you are made to feel that everyone needs to be connected at all times. We are an insecure society, always worrying. Maybe I am going overboard but I am sure some people feel the same way.
Oh and by the way, the Median income in the United States is an abysmal $26,344 which is a 10 year low. I am led to believe that this number will continue to fall as unemployment rates are not improving and wage growth is significantly lower as companies find as many ways as possible to cut costs in this tough economy.
References
http://www.usinflationcalculator.com/inflation/current-inflation-rates/
Sunday, April 29, 2012
A Good Old Fashion Boycott
As companies strive to cut costs in an effort to impress shareholders by increasing their earnings per share, more and more jobs are being sent overseas. People will work for 10 times less in other countries so why not cut the workforce in the U.S and send the same work to India, China or the Philippines. If their work is just as good as ours for a tenth of the cost then it's a win win right?
Well, the answer is not quite that simple. For one, the American economy is still not out of a recession and really never will be as long as this continues to happen. It is only furthering the income gap between the rich and the poor, and more importantly it is knocking more of the middle class into the lower class of the income game.
People have power in numbers and a boycott of companies practicing this extreme cost cutting should probably be boycotted if Americans want a fighting chance. I mean these companies want Americans to buy their products, yet are not providing the jobs needed to do so. Of course this boycott will never happen because it is too hard to unite enough people to make a damper in a companies income. Actually we have the technology to do it, but most people lack the dedication or sacrifice to pull this off. And who knows if companies really care about Americans anymore. Companies go after emerging growth markets to buy their brands and what better way to do that than by employing those same people where the largest growth is happening.
These are just random thoughts and I believe the whole world should have the same opportunities as we do in the United States, however it is just difficult to swallow when it is at the expense of us. What started as phone support for credit card and phone companies is now moving to data analysis, marketing and technology development. Jobs aren't disappearing, they are just being moved for a lower cost alternative.
I will continue expanding on this article with hard numbers and facts instead of random thoughts.
Well, the answer is not quite that simple. For one, the American economy is still not out of a recession and really never will be as long as this continues to happen. It is only furthering the income gap between the rich and the poor, and more importantly it is knocking more of the middle class into the lower class of the income game.
People have power in numbers and a boycott of companies practicing this extreme cost cutting should probably be boycotted if Americans want a fighting chance. I mean these companies want Americans to buy their products, yet are not providing the jobs needed to do so. Of course this boycott will never happen because it is too hard to unite enough people to make a damper in a companies income. Actually we have the technology to do it, but most people lack the dedication or sacrifice to pull this off. And who knows if companies really care about Americans anymore. Companies go after emerging growth markets to buy their brands and what better way to do that than by employing those same people where the largest growth is happening.
These are just random thoughts and I believe the whole world should have the same opportunities as we do in the United States, however it is just difficult to swallow when it is at the expense of us. What started as phone support for credit card and phone companies is now moving to data analysis, marketing and technology development. Jobs aren't disappearing, they are just being moved for a lower cost alternative.
I will continue expanding on this article with hard numbers and facts instead of random thoughts.
Tuesday, April 10, 2012
Save Money with Coupons
The printed coupon is becoming somewhat outdated. Sure, we can still use them at the grocery store and some department stores, however most of our shopping is now being done online. I recently discovered a site called ultra store coupons which saved me $30 on my exhaust purchase for my Dodge Ram. There are many coupon sites out there, some better than this one, but the cool thing I liked about this site was that they donate to schools. Being a father who has children in school, I know the budget cuts have really hurt the school system. So if you are going to make a purchase online, go ahead and check out the site.
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