U.S. worker salaries are growing much more slowly than inflation, raising concerns about consumers’ ability to repay loans and credit cards bills at a time when borrowing is near all-time highs.
Just as Americans have begun receiving hefty statements for their holiday purchases in the mail, the government reported on Friday that wages rose a meager an 2.5 percent over the past year — the smallest increase on record.
Stacked against a 3.3 percent overall increase in prices for the year, the data paints an ugly picture of debt-burdened, cash-strapped American consumers struggling to make ends meet.
Overall employee compensation is actually climbing considerably, but the bulk of the increase comes from sky-high health care costs.
For this complete story, please visit Worker Salaries Losing to Inflation; Ability to Repay in Question.
