SALT LAKE CITY — Newly released labor statistics show American workers are making more money — but with the prices of everything from gas to groceries soaring, even with those higher wages, the workers take home less money.
“If inflation wasn’t your concern over the past year and a half, it should have been,” Tom Craner, wealth management adviser at Strategic Planning Group told Bountiful. “And if it still isn’t, she should become one.”
Craner says that historically speaking, these periods of high inflation do not last more than two years, according to the policies established by the current administration. He said if he had to guess, we’re halfway there.
Craner spoke to FOX 13 News about new labor statistics released Friday, which show wages for American workers have risen to a 20-year high, at 4.5% in the past 12 months. But so-called real compensation, which is adjusted for inflation, fell 3.7% for all workers.
“Well, you know, that’s exactly what happens, a natural consequence when you have 2+ years of national economic shutdown and overstimulation,” Craner said, adding that it’s important at this time to structure your investments to help fight inflation over the long term.
Coming out of the pandemic era, employers have to pay higher starting wages and workers can bargain more, but to keep up with inflation, Craner says, it might be time to do a little tweaking. save more, spend less and take a look at your long-term investments.
The Commerce Department recently released new numbers, showing consumer spending rose more than 1% last month, despite the economy contracting for three months.
“At the end of the day, remember: it will pass, but also save a little extra, make the right kind of investments to fight inflation, and you’ll have to tighten your belts a bit in the meantime.”