Wages and Buying Power

Quality of life is determined not by how much money one makes, but the purchasing power of the money earned and how much money is left over after paying bills.
Think about it.

Purchasing power (sometimes called adjusted for inflation) is the number of goods or services that can be purchased with a unit of currency.
For example, if a person had taken one dollar to a store in the 1950s  that person would have been able to buy a greater number of items than would today.

The question needs to be asked: Why are Democrats considered PRO-LABOR when  they are making workers across the United States increasingly weaker by taking away their purchasing power.

If a persons income stays the same, but the price level increases, the purchasing power of that income falls. Inflation does not always imply falling purchasing power of a person’s wages since wages may rise faster than the price level.
A higher real income means a higher purchasing power since real income refers to the income adjusted for inflation.

For example, let’s say Union Jack takes home $50,000 a year and is paying $15,000 for his mortgage, $5000 for his car, $20,000 for gas and electricity, and $10,000 on miscellaneous bills and necessities (it equals $50,000). Democrats then give Union Jack a tax cut. As a result, Union Jack is now taking home $55,000 a year. At face value, that seems great. However, Democrats want to make up the revenue by taxing business owners. Businesses then respond by raising their prices to make up for the extra money they have to pay in taxes. As a result, gas and electricity cost more. The price of Union Jack’s energy goes up from $25,000 to $28,000. Those miscellaneous things like cable and food also become more expensive as a result, going from $10,000 to $13,000 (everything now costs $56,000).

INFLATION

Even worse, when Union Jack needs to buy a new car, that new car is going to cost him significantly more than what he was paying before. He can save money by buying used; which is one less car being manufactured. When demand for vehicles falls across the country, auto-workers get laid off. When workers stop getting pay checks, they stop buying things. When people stop buying things, demand for things begins to fail, profits drop and workers making things get laid off. When they get laid off, they stop buying things, too. In time, these people lose their homes and house values plummet. If Union Jack ever needs to sell his home, he’s probably not going to get what he paid for it. In other words, his home is no longer worth the $15,000 a year that he’s paying for it.

Of course, this assumes Democrats actually gave Union Jack a tax cut to begin with. That almost never happens. History has proven that Democrats would increase taxes on businesses and leave Union Jack’s middle class tax rate alone. So Union Jack is still making $50,000 a year but his expenses would climb from $50,000 to $56,000.

Again, The question needs to be asked: “Why are Democrats considered PRO-LABOR?” They are making workers across the United States increasingly weaker by taking away their purchasing power.
Democrats love to tax. they want to tax you for every mile you drive on top of the gax tax you already pay. This will lower your buying power even more.