Rising inflation adds to pocket book crisis for workers

After adjusting for inflation, the study concluded that workers’ wages are 3.1 percent less than a year ago. This is the biggest year-over-year decline since November 1990.

“Gasoline prices rose 4.1 percent [in July] and are up 37.9 percent in the past 12 months. Food and beverage prices are up 5.8 percent in the past 12 months,” noted Gary Bigg, a New York economist with Bank of America. (Baltimore Sun, Aug. 15)

The Labor Department also reported that the number of people receiving unemployment benefits increased to 3.42 million, the highest level since November 2003. (The News Observer, Aug. 15)

Analysts from Realtytrac said that more than 272,000 people in the United States received a foreclosure notice in July, a rise of 55 percent over the same month last year. Florida and California had the highest rate of foreclosures.

In a further indication of the severe problems affecting the U.S. housing market, more than 77,000 homes were repossessed in July. As a result of this increase, 17 percent of all homes for sale in the United States are repossessed properties.

The federal minimum wage went from $5.15 to $5.85 per hour in 2007—the first increase in nine years. It has since gone up to $6.85 and will increase to $7.25 per hour in 2009. These low wages fail to keep up with rising prices and amount to a government-issued pay cut for low-income workers.

Over the last two decades—as the wealth that U.S. workers create has greatly increased—workers’ wages have fallen farther and farther behind inflation. The numerically tiny capitalist elite is taking home a greater share of the country’s total income.

Under capitalism the rich get rich and the poor get poorer. In the current economic crisis, workers are suffering the most.

The La Riva/Puryear presidential campaign demands that the minimum wage be raised to $15 per hour. As a start, price controls on food, energy and other basic necessities should be instituted immediately. Economic aid to workers—the producers of wealth under capitalism—should be a right not only in difficult times, but at all times. Workers should have the right to set prices and wages and make the fundamental economic decisions of society.