Milt Palacio

The economy is not in such great shape right now. For the first time in 14 years, inflation outpaced wage growth in 2004:

Wages Lagging Behind Prices

This trend has continued into 2005 as well. Gas prices, health insurance costs and housing/rent costs are rising at a great rate, far greater than wage growth. When will people get fed up?

MalloryKeaton

I think people are already fed up. The pice of things has gotten outrageous. $4 for a gallon of million, $2-$3 a gallon for gas, etc. Stamps will be going up to 39 cents. They approved a two cent hike. I don't know the exact date the increased stamp price will take effect.

Milt Palacio

Milt Palacio

AARP: Drug Costs Jump 7.1 Percent in 2004

Thank god we didn't allow those Canadian drugs to be imported, huh?

Taffy

But....but, the Schaivo case! Let's talk about that! Or how about the freedom and democracy we're bringing to the world and making it a safer place by invading Iraq. Inflation...what inflation? Look, if you compare the $2.50+ per gallon for gas to the high inflation of the '70's, in today's money it'd be over $3.00 a gallon! See we're still ahead.

When people can't afford gas to go to work. When they can't heat their homes. When fire and police depts. can no longer protect people because they've been cut to the bone. When enough hospitals close. When they loose their job and then their house. When they can't even get out of debt by declaring bankrutcy. Then maybe they'll look around and start asking questions, starting with, "what were we thinking in 2004?"

But in the meantime, don't worry folks, Chevron-Texeco, Mobile, Arco, and all the others are making records profits! And the pharmaceutical companies aren't doing too bad either.

mh67511

Well the generic drugs only increased 1% I believe, so those are probably the best bet. I know when I shop I always get generic stuff, like Sam's Choice Mlik - $2.20 a gallon. I'm just glad I don't have a car - if I did I wouldn't have any money to buy gas, that's for sure!

I'm just fed up because NO ONE is going to see movies! Our theatre is just about dead. We've got so little business that I am only getting about 7 hours a week. That new Star Wars movie can't come fast enough.

What exactly is inflation? Does it have anything to do with the interest rate? I'm a little ticked because my student loan interest sheet came in the mail and in the past six months my rate has increased 1%. Not a huge deal, but I try and pay off the interest as it accrues and it's a lot more difficult.

Milt Palacio

People cut back on extra stuff like movies when the economy is bad so I'm not surprised.

Inflation means the inflation of prices. Basically the rising price of basic goods and services is inflation. When inflation outpaces wage growth, your buying power has gone down and you've automatically become poorer. I"m actually surprised the inflation rate isn't higher, I'm not sure if it factors in gas prices or not.

http://www.investorwords.com/2452/inflation.html

No, not directly. But the chairman of the federal reserve will raise the interest rate to try and curb inflation, which is one of the reasons Greenspan has raised it a few times in the past year.

In Fair Verona

I don't have a car either, in fact I won't be getting on until August but I've already started putting aside a third of my paycheck to accumulate gas money.

mh67511

That's what confuses me. Sure, you can make 3.25% interest instead of 3% on your savings account. But at the same time interest rates for credit cards and some loans can go up, which basically cancel out the increased interest for savings. It seems like raising the interest rate would benefit people who aren't in debt and hurt those who are in debt. And generally speaking, the less income you have, the more debt/less wealth you have.

I guess I'll learn all about this in economics next year.

WalkingOnSunshine

Perhaps, but it could also be due to the fact that there are not that many good movies out right now.

*Ledi*

People always go to see movies, even if they're bad.

WalkingOnSunshine

I know that is your opinion, but personally I am not going to waste money on a bad movie in the theater. I will wait for it to come to Blockbuster. Maybe other people are thinking along those same lines. I don't see the relation between the economy and the movie theater. I do see the relation though between bad movies being made and less people going to the theater.

JW77

A lot of people do though...when they have money anyway. But to them, they may not feel that they're spending money on a bad moive. It all comes down to what they enjoy.

Personally, I agree with Ledi. I think that when people have extra money to spend on movies and other things of that nature, most will go whether the movies out are good or bad. I know that's how I am anyway.

mh67511

While I'm no expert on movie theatres, I've worked at two theatres in two completely different markets (Chicago, IL in 02-03 vs. Lincoln, NE right now) and BOTH were extremely slow from January - April. This is just a general trend in the industry, not the economy. I was kind of joking around; I want more people but I know they wont start coming until May. I don't think a bad economy has much to do with it, it's just that the industry is slow in the winter months.

Milt Palacio

Stock market has been crashing the past 3 days.

The Dow Jones and S&P 500 are both still down from when Bush took office in January of 2001 believe it or not! The stock market has been a disaster under the Bush administration.