ECONOMIC TRENDS

Generally, in the recent years the balance between income and expenses have been affected. As shown in the upper chart, the blue linear presents that how much percentage is the gas price per gallon Vs the Federal minimum wage rate. The higher percentage is the lower standard of living, if for instance, we take these two factors to measure the whole thing. 

In 1988, the gas/gallon price was just approximately 31% of the federal minimum wage rate, which is best found in the last 35 years. Currently, it is at approximately 50%. Which means the huge decline in the quality of life overall.

The bottom text in the figure above, it mentions the 1988 standards to today's rates. If the federal minimum wage rate remains $7.25 then the gas/gallon should not exceed $2.25 OR by the current average rates of gas/gallon price remains same then the minimum wage should be at least $11.48 to live those standards of life that was in year 1988.

General Concept

Poor remains poor because of the poverty. Either, it is about an individual or a country, it still fits.

In order to add progress to this never ending cycle, it takes few huge investments along with some tough but important decisions. 

One of other factors are changing trends in economic market, for example, customers are adopting to choose online stores instead of local stores. The great reason behind this, obviously is the pricing and convenience to buy from your office or home. You could browse a lot just by sitting in your chair instead walking for about an hour into a local store and still can't find what you want in the affordable pricing. Secondly, you save money on gas too. There are two main factors that kept people from shopping online, Trust and waiting time. Due to inflation those factors do not matter a lot to a customer now.

On the other hand, a lot of people prefer to work from home, selling services or goods to online buyers. As discussed in the beginning of this article, in today's economy, when an employee is working a full time job, there is no wonder if at a point that employee would run out of money for gas in the car. Now a days a class of labor has to afford their jobs. Does not matter if rent, bills or groceries are paid or not, but the gas has to be filled in order to keep your job. 

If an employee works 8 hours a day on FMWR then one hour of work is just paying for the commute to work for that day. If a car does 15 miles per gallon and the average commute is 50 miles then with the current gas rate, it costs 3.00 gallons of gas which approximately costs around $11.00 which a time and half of minimum wage rate. Means an hour and half of your 8 hours shift is paying for gas alone.

Another point of view to observe the change in the economy is to see the impact of inflation. When prices hike, all of the pressure builds up on a customer anyway. It works like a hydraulic pressure. It has been noticed each and every time that whenever the gas prices increase, other prices increase as well. For instance, I still remember the times when a gallon of milk was around a dollar and the gas was around a dollar and few cents. As soon as the Hurricane Katrina came, the gas prices boosted and crossed $4 per gallon and on the other hand the price for a gallon of milk also increase to approximately around $2.5.

Every time gas price will go up the other prices will go up too, but unfortunately, the prices will not be reduced for other products even if the gas prices do reduce.

Hope for best....