Pamela Kruger

November 01, 2006

No Inflation? Think Again

We keep hearing how inflation is low, but as USA Today points out in a story today, the prices of "big-ticket, middle class basics," from housing to health insurance and college tuition, keeps rising. Meanwhile, wages for most Americans are stagnant. Actual, inflation-adjusted wages are down 1% in the past four years, according to statistics compiled by USA Today.

And while the economy is said to be stronger, I'm seeing a high level of economic insecurity, even among relatively affluent couples.

There is no such thing as job security anymore, and everyone seems to understand that they could be laid off tomorrow. While so much is written about the stress in being part of a dual-income marriage, I think this is one area in which we come out ahead, because we at least have some security in knowing that if one of us lost a job, we could pay our mortgage with the other's salary.