over9k
So I didn't tell my wife, but I...
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bingo
bingofrom previous experience , wages ( rises ) lag inflation
one reason is you need the CPI rises to justify asking for the wage increase , so that makes wages at least six months behind
and most governments find it ' politically necessary ' to to fiddle with the CPI ( allegedly to reduce public panic . and voter alienation )
BUT if the masses have less disposable income .... what do they buy , and what do they resist buying ( at previous rates )
Most of my working life has been under 3 year agreements which specifically preclude any consideration of being changed during that time meaning they're locked in.from previous experience , wages ( rises ) lag inflation
i have usually worked outside that framework , and when there has been a formal wage agreement that rarely worked to the employee's advantage either ,Most of my working life has been under 3 year agreements which specifically preclude any consideration of being changed during that time meaning they're locked in.
There'd be a great many on those sort of arrangements in big business and government.
Within that structure as an individual you can negotiate classification but you can't change that classification xyz = $abc. The room to change that latter point is zero, it's set in stone down to the cent.
It looks like everyone has forgotten about productivity. Most people do, so don't feel bad
There is always going to be increases in some part of a businesses cost base, the business that can counteract increases with other measures such as 'productivity' will be the most successful. These are the companies that investors look for.
The Key to Productivity
Explains how to measure and monitor productivity to improve your workforce.www.netsuite.com
Better late than never, welcome to the party.
As a corrollary to this tweet comes the news that Union Pacific is threatening to move out of shifting stuff from LA because of theft.One of the Myriad of reasons why goods are slow/hard to come by could be just plain theft.
Containers Busted Open
Mick
January consumer confidence at 30-year low as Omicron spread smashes spending outlook
Consumer confidence has slumped to its lowest level for the month of January in the past 30 years, as a surge in Omicron cases dashes spending intentions.
ANZ and Roy Morgan’s weekly index of consumer confidence fell by 7.6 per cent in the past seven days to its lowest overall level since October 2020.
But ANZ head of Australian economics David Plank said the result highlights that concerns about Covid-19 have the potential to impact the economy if they linger.
“Consumer confidence readings are usually positive during the month of January and the level of 97.9 is the weakest January result since 1992, when the Australian economy was experiencing sharply rising unemployment,” he said.
“We don’t think the economy is as weak as these data might suggest, with the shock of the Omicron surge and strains on testing capability the key drivers of the fall rather than underlying economic conditions.”
The consumer confidence reading, which measures consumers’ feelings about current and future economic conditions, was below the neutral level of 100 at 97.9.
By region, consumer confidence is now below the neutral level of 100 in all states, but is above neutral in the territories.
All subindices registered losses, as the survey’s measure of “current financial conditions” dropped 11.3 per cent.
The outlook on “future financial conditions” fell 4.3 per cent, with 19 per cent of respondents expecting to be “worse off’ financially this time next year – the highest since September 2020.
Meanwhile, a separate ANZ survey revealed there are no signs of a recovery in spending among the bank’s customers.
Spending intentions in the first half of January slumped by 27 per cent, compared to the first half of December, with entertainment and travel the hardest hit sectors.
By contrast, previous years have seen 17-21 per cent declines over the same period.
ANZ senior economist Adelaide Timbrell said grocery purchases have improved and non-food retailing and dining has stayed somewhat stable at low levels through January.
More than 10 per cent of dining/takeaway expenditure took place online in the first half of January, compared to 4 per cent pre-Covid and 12-14 per cent during lockdown periods. Generally, the national seasonal decline over the festive period in dining spending is around 11-18 per cent, but this year it was 26 per cent.
Meanwhile, 25 per cent of the non-food retailing ANZ measured is now occurring online, which is a little higher than recent shares of online spending outside of lockdown conditions (20 per cent) but lower than the peak last year during Delta lockdowns (40 per cent).
Ms Timbrell said non-food retailing has also shifted down and online, but not as sharply as spending for other sectors.
MATT BELL BUSINESS REPORTER
A question there is which leads which?At the simplest level, broad historical correlations suggest a negative relationship between productivity and inflation (Table 1). Most OECD countries had low productivity growth and high inflation in the 1970s and, to a lesser extent, the 1980s. Productivity growth then generally increased through the 1990s at the same time as inflation generally fell.....
Forgot to include staff turnover in that. Another productivity killer.Unhappy workers are almost always less productive than happy ones.
Which tends to drive wages growth, as employers try to hold staff, especially when the job requires training.Forgot to include staff turnover in that. Another productivity killer.
Rba will possibly hold off on a rate rise.
now maybe i have worked for some dumb companies , pay rises for solid staff seems to be rareWhich tends to drive wages growth, as employers try to hold staff, especially when the job requires training.
If the workers personal cost keep rising, they will try to push for a payrise, failing that they will look for higher paying work.
The last thing a worker wants to do is go backwards, that usually involves losing something they have worked to purchase, if prices keep going up it is a certainty wages will follow.
The last few years rising prices of certain things, have been offset by prices of other consumables falling, with the supply chain problems pushing up the wholesale prices and fuel costs pushing up the overheads I can't see a lid being kept on prices.
Better late than never, welcome to the party.
Of course it’s in the wrong direction, we have Covid, and before that we had poor policy from a few governments.
My point was only that all the recent posts had mentioned everything but productivity, which is one tool that can counteract inflation. Smart companies are and can improve productivity, find them and that’s a great investment.
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