The U.S. economy is proceeding full steam ahead as stocks continue to perform well on Wall Street and wages have been increasing for the past 17 months. The increase has been close to three percent but can those gains be sustained?
"It will definitely be a challenge for companies to maintain this level of wage increases but we’re primarily seeing a waterfall effect from the tax cuts," says Derrick Kinney, a private wealth advisor. "The challenge right now is how long can this last with some of the tariff worries that are there and some of the other economic concerns, I wouldn’t be surprised the markets slow down over the next few months."
The wage growth numbers aren't so stellar when you start factoring in the effects of inflation.
Kinney explains, "Just because your paycheck is increasing, inflation is also increasing so be weary and careful about what you spend your hard-earned money on because while you might be making more money, it might be costing you more with inflation."
Kinney advises for people to take their wage increases and use those for their savings rather than going out and spending the money. That could be some sound advice since when factoring inflation, those wage increases are closer to one percent, but at least many of us finally get to be part of the "one percent."