Falling wages, soaring energy prices and inflation: It's beginning to look a lot like the 1970s

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1. 1h ago

   Falling Wages, Rising Energy Prices Echo 1970s

   Current economic conditions show falling real wages, soaring energy prices, and persistent inflation, mirroring the 1970s. Wage growth has slowed to its lowest pace since 2021, and inflation continues to erode wage gains through September. A stagnant job market featuring little hiring and few firings has resulted in fewer raises for workers. Meanwhile, the Federal Reserve faces mounting pressure to address ongoing inflation as price increases persist across the economy.

   Why it matters

   Economic parallels to the 1970s emerge as cost-of-living pressures intensify for consumers dealing with high energy expenses and shrinking purchasing power. The current labor market dynamic limits wage growth because employers neither hire aggressively nor terminate staff, restricting upward pressure on compensation. Understanding this environment requires tracking how inflation consistently outpaces worker earnings over multiple months.

   What is confirmed

   • Wages are rising at the slowest pace since 2021.
   • Inflation has been eating up wage gains for months, including through September.
   • Current conditions include falling wages, soaring energy prices, and inflation.
   • The job market features a no hiring, no firing dynamic that results in fewer raises.

   Still unconfirmed

   • The US Federal Reserve is under pressure to address rising inflation.

   What to watch next

   • Upcoming Consumer Price Index and Producer Price Index releases indicating price trajectories
   • Federal Reserve policy decisions regarding inflation pressures
   Sources used for this update (8)

   1. MarketWatch — Opinion: Falling wages, soaring energy prices and inflation: It’s beginning to look a lot like the 1970s
   2. WSJ — Wages Are Rising at the Slowest Pace Since 2021
   3. Investopedia — The ‘No Hiring, No Firing’ Job Market Now Means Fewer Raises, Too
   4. finance.yahoo.com — Inflation has been eating up wage gains for months. September was no better.
   5. Morningstar — Falling wages, soaring energy prices and inflation: It's beginning to look a lot like the 1970s
   6. globalcommunityweekly.substack.com — Falling wages, soaring energy prices and inflation:
   7. longbridge.com — Falling wages, soaring energy prices and inflation: It's ...
   8. warpbeat.com — Falling wages, soaring energy prices and inflation: It’s ...
   confidence 90%