The Erosion of Purchasing Power in the United States
The Erosion of Purchasing Power in the United States:
A Detailed Analysis from January 2021 to August 2024
by JOE WALLACE
SEPTEMBER 3, 2024
Introduction
Since January 2021, the United States has witnessed a significant shift in purchasing power due to the combined effects of inflation and wage growth. Using 100 as a base year, this article explores the monthly changes in purchasing power by examining the ratio of inflation to wage increases over this period. The resulting analysis reveals a troubling trend where wages have struggled to keep pace with rising prices, leading to a decline in real income and purchasing power for many Americans.
Analysis
1. 2021: The Early Impact of Inflation
The year 2021 saw a rapid rise in inflation as the economy rebounded from the pandemic-induced slowdown. While wages did increase during this period, they did not keep pace with the surging cost of living. This is reflected in the purchasing power index, which began to decline as early as March 2021. By the end of 2021, the index had dropped to 96, indicating a 4% decline in purchasing power relative to the base year.
2. 2022: Wages Struggle to Catch Up
In 2022, inflation continued to rise, albeit at a slower pace. Wages also grew, but the increases were uneven across different sectors. The purchasing power index fluctuated throughout the year, reflecting periods where wage growth temporarily outpaced inflation. However, by December 2022, the index stood at 93, signaling a cumulative 7% decline in purchasing power since January 2021.
3. 2023: Inflation Moderation and Stagnant Wages
The year 2023 brought some relief as inflation rates began to moderate. However, wage growth also slowed, leading to a further erosion of purchasing power. By mid-2023, the purchasing power index had fallen to 91, with many Americans feeling the pinch as their paychecks stretched less far than they had in previous years.
4. 2024: The Continued Decline
As of August 2024, the purchasing power index has reached 89, marking an 11% decline from the base year. Despite efforts to curb inflation and increase wages, the cumulative effect of the past three years has left many workers struggling to maintain their standard of living.
Graph: The Decline in Purchasing Power (January 2021 – August 2024)
The graph above in this article illustrates the steady decline in purchasing power from January 2021 to August 2024. The graph uses 100 as the base value, with each month’s index calculated using the formula outlined above. The downward trend is stark, highlighting the persistent challenge of balancing wage growth with inflation. Today the average American has a purchasing power that is 11% lower than it was when President Biden took the oath of office.
Conclusion
The analysis of purchasing power in the United States from January 2021 to August 2024 reveals a concerning trend. While wages have increased, they have not kept pace with the rising cost of living, leading to a significant decline in purchasing power. Policymakers and businesses must address this issue to ensure that American workers can maintain their standard of living in the face of ongoing economic challenges.
This article underscores the importance of monitoring both inflation and wage growth as critical factors in the economic well-being of households across the country. As the nation looks ahead, addressing the gap between wages and inflation will be key to restoring purchasing power and ensuring economic stability for all Americans.
Life Lessons from The Art of War
Life Lessons from The Art of War By Sun TZU
submitted by Joe Wallace
1. Know Yourself and Know Your Opponent
One of the most famous quotes from The Art of War is, “If you know the enemy and know yourself, you need not fear the result of a hundred battles.” This principle underscores the importance of self-awareness and understanding others in any competitive or challenging situation. By knowing your strengths, weaknesses, and capabilities, and understanding your opponents or circumstances, you can strategize effectively to achieve your goals. This applies to personal relationships, business, sports, and self-improvement.
2. Preparation is Key
Sun Tzu emphasizes the importance of preparation in warfare, stating that victory is often determined before the battle begins. In life, careful planning and preparation can prevent problems and set the stage for success. Whether it’s preparing for a job interview, managing a project, or setting life goals, meticulous planning equips you to handle challenges and make sound decisions.
3. Adaptability and Flexibility
“The supreme art of war is to subdue the enemy without fighting.” Sun Tzu teaches that rigidity can be a downfall; instead, flexibility and adaptability are crucial. Life is unpredictable, and the ability to adjust strategies in response to changing circumstances is invaluable. Being flexible allows you to find alternative solutions, avoid unnecessary conflict, and seize unexpected opportunities.
4. The Power of Deception and Discretion
Sun Tzu often speaks of the value of deception in war: “All warfare is based on deception.” While deceit may sound unethical in everyday life, the broader lesson is about the strategic use of information and discretion. Not every thought or plan needs to be broadcasted. Sometimes, holding back information or presenting it in a particular way can be beneficial, such as in negotiations or when protecting personal boundaries.
5. Timing and Opportunity
“The wise warrior avoids the battle.” Timing is everything in both war and life. Sun Tzu advises that recognizing the right moment to act—or not act—is often what separates victory from defeat. Patience, observation, and waiting for the right moment can be more effective than rushing into action. This lesson teaches the importance of knowing when to push forward and when to hold back, a critical skill in business, relationships, and personal decisions.
6. Choose Your Battles Wisely
Sun Tzu states, “He will win who knows when to fight and when not to fight.” This lesson applies to everyday life by teaching that not every conflict or challenge is worth engaging in. Choosing battles wisely helps conserve energy and focus on what truly matters. It’s about prioritizing efforts and knowing when to let go, whether it’s a workplace conflict, a personal dispute, or a risky investment.
7. Leadership and Strategy
“The general who wins the battle makes many calculations in his temple before the battle is fought.” Sun Tzu highlights the importance of strategic thinking and leadership. Effective leaders are proactive, make informed decisions, and inspire others by setting a clear vision. Good leadership involves careful planning, resource management, and a deep understanding of those you lead.
8. Focus on Strengths, Exploit Weaknesses
Sun Tzu teaches to attack the enemy’s weaknesses and avoid their strengths. In personal and professional life, this translates to leveraging your strengths while being mindful of your weaknesses. It’s about positioning yourself where you have the greatest advantage and avoiding areas where you are vulnerable. This lesson encourages focusing on what you do best and finding ways to mitigate or improve upon your weaknesses.
9. The Value of Unity and Morale
Sun Tzu emphasizes the importance of maintaining high morale and unity among troops. In life, fostering teamwork, camaraderie, and mutual support can lead to greater success. Whether in families, workplaces, or communities, the strength of unity and collective effort often outweighs individual brilliance.
10. The Art of Indirect Approach
“Engage people with what they expect; it is what they are able to discern and confirms their projections.” Sun Tzu often advocates for indirect strategies, surprising opponents with unexpected moves. In life, the direct path is not always the best. Creative problem-solving, approaching issues from different angles, and thinking outside the box can be powerful ways to achieve objectives.
The Art of War provides timeless wisdom that extends far beyond the battlefield. Its principles of strategy, leadership, and adaptability are invaluable lessons that can help navigate the complexities of life, encouraging thoughtful action, self-awareness, and strategic planning.
Evansville Redevelopment Commission Meeting Agenda
SEPTEMBER 4, 2024
8:30 A.M.
AGENDA
| 1. | Call to Order |
| 2. | Approval of Minutes August 20, 2024 (roll call vote) |
08.20.24 Minutes (unsigned) Attachment:
| 3. | Financial Statements Accounts Payable (roll call vote) |
| 4. | Downtown Redevelopment Area (roll call vote) |
a. Resolution 24-ERC-29 Authorizing an Agreement with RiverTown Construction, LLC for Streetscape Updates in the Downtown Redevelopment Area
| 5. | Other Business |
| 6. | Adjournment |
Judge Dismisses States’ Challenge To Biden MINProgram Allowing entry to migrants from 4 countries
Migrants Admitted Through The Program Helped With A U.S. Farm Labor Shortage
SEPTEMBER 2, 2024
The Biden administration is restarting an immigration program that allows migrants from Cuba, Haiti, Nicaragua and Venezuela to come to the United States, and it is including “additional vetting” of their U.S.-based financial sponsors following fraud concerns.
The Department of Homeland Security had suspended the program earlier last month to investigate the concerns but indicated that an internal review found no widespread fraud among sponsors.
Homeland Security also said it had not found issues in vetting the migrants themselves, saying those who come to the U.S. under the program “have been thoroughly screened and vetted.”
When it announced the program’s suspension, Homeland Security didn’t say when it had stopped processing requests. New of the suspension broke after the Federation for American Immigration Reform, or FAIR, cited an internal agency report that raised questions about fraud.
Neither Homeland Security nor FAIR, which favors immigration restrictions, has provided that report. FAIR asserted that the report showed that 3,218 sponsors were responsible for more than 100,000 filings and that 24 of the top 1,000 Social Security numbers used by sponsors corresponded to dead people.
EPD DAILY ACTIVITY REPORT
FOOTNOTE: EPD DAILY ACTIVITY REPORT information was provided by the EPD and posted by the City-County-County Observer without opinion, bias, or editing.
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Friars defeat Aces in weekend finale
Cardona records 13 kills in the contest
SAN JUAN, Puerto Rico – In a match that saw the University of Evansville volleyball team give Providence all it could handle, the Friars outlasted the Purple Aces in a 3-0 match on Sunday afternoon at Coliseo Mario Morales.
Leading the way for UE was Giulia Cardona with team-highs in both kills (13) and digs (11). Melanie Feliciano wrapped up the day with seven kills and eight digs. Kora Ruff added 25 assists.
Game 1 – PROV 28, UE 26
A quick start saw the Friars jump out to a 3-0 lead before the Aces rallied back. Consecutive kills from Angelica Gonzalez Maltes tied the score at 5-5 before a Providence error gave UE its first lead at 6-5. Evansville continued to play well as a rally that included a Cardona kill gave her team its largest lead at 15-10.
An ace from Cardona matched the 5-point lead at 17-12 before Providence made a run. Five in a row tie things up, but Josdarilee Caraballo notched a kill to put UE in front. A pair of kills by Feliciano helped Evansville earn set point with a 24-20 lead, but the Friars rallied once again. Five in a row put them back in front before they finished with a 28-26 win.
Game 2 – PROV 25, UE 15
Cardona gave Evansville an early 3-2 lead in the second frame while the Friars regained the advantage with an 8-1 stretch that gave them a 10-4 lead. Feliciano picked up a kill that helped UE cut the deficit to 10-7 before Providence took control, pulling away for a 25-15 decision.
Game 3 – PROV 25, UE 20
Things were close once again in the third set as the score was tied at 7-7. A kill from Cardona saw the Aces go up 9-7 while a Feliciano kill solidified a 15-11 lead. The Friars rallied with four in a row before an error put UE on top at 16-15.
With the score knotted at 16-16, a 5-1 run was the difference as they would clinch the match with a 25-20 victory. The home slate opens for the Aces on Friday with the Dunn Hospitality Tournament. Evansville faces Chicago State at 10 a.m. and Samford at 7:30 p.m. Friday before taking on Miami Ohio at 2 p.m. on Saturday.
Aces men’s soccer keeps Mayor’s Cup in 3-1 win over USI
