Was watching the News last night and saw a report on how the cost of food will be going up yet again in 2013. Also stated that many products: meats, Veg, Bread etc..., have all gone up 30-60% since 2002. I was surprised by these figures to be honest, and I do understand that there is inflation and that prices do rise, but in 10 years for things to double?? Wow!
And, as we all know, housing costs, especially in larger cities, have gone up exponentially. A lot of this of course is in line with rising fuel costs over the years. Anyway I guess the point I'm trying to make is that wage increases, in aviation, just haven't followed suit. When I was a young keener back in the late 80's, early 90's trying to get my start I certainly wasn't making very good money. However, I was able to make it work because gas was 40 cents a litre, I shared a nice 2 bedroom apartment downtown in a major city for $250 a month, and on a Friday night I could go down to Earl's and have a beer, burger, and appetizer for $20 including tip. And yes they wore little black dresses back then as well.
Today though all these costs have doubled, or in some cases tripled, yet the wages are pretty much the same, or only slightly higher as what I was getting paid 20+ years ago at the same company in the same city. Unless you have parents helping you out financially it must be a struggle for those starting out??
My father and grandfather worked at the same large industrial company for 33 an 40 years each, respectively. When my father retires, he will get an identical retirement package to what my grandfather got (by that time) almost 28 years different. Not one penny more, no inflation accountability, nothing. If anything, things are on the decline, with an increase of hours for lower wages. Guys starting now have half the pension of my father, if that. The company has moved to contractors. This, not too long ago, was one of Canada's top 50 companies.
Currently, my instructing friends make it by. Barely, but they do. Honestly speaking, I know I few people who live off minimum wage, single parent, and they can't win. I have no idea how the system works, when the minimum isn't high enough to be stable. We all know single parenting is on the rise, and cost of living is on the rise, but when you need $15-20/hour just to live in community housing and have food in the refrigerator, and all you make is $10.25 (Ontario)...well, that's not good.
The increases are in part due to supply...the US has experienced two severe droughts for two years in a row. That has an impact on food prices. I'm not well versed in agriculture but haven't prices been rising steadily over the past decade? Oil is a good example of this as well. Prices doubled in just a decade.
The fact that wages haven't kept pace is a bit more mysterious. That may have something to do with productivity levels, an increase in the labour supply...rising income inequality is a factor as well.
You can count pretty firmly on 7-10% inflation rate over the last 10 years here. Unless you believe the "official" 3% number.
There wages were growing at about 5% rate overall over the same period.
I couldn't remember the year but I remember everything going up about 30% suddenly. My brother in-law was married just after so I was able to look at a picture album on Facebook. Handy.
The end of 2007 beginning of 2008 I think they blamed a hurricane or something.
Kestral wrote:Was watching the News last night and saw a report on how the cost of food will be going up yet again in 2013. Also stated that many products: meats, Veg, Bread etc..., have all gone up 30-60% since 2002. I was surprised by these figures to be honest, and I do understand that there is inflation and that prices do rise, but in 10 years for things to double?? Wow!
Not sure where the reporter was sourcing data, Kestral, but if you're interested, Statistics Canada provides all kinds of inflation data at http://www.statcan.gc.ca/tables-tableau ... 1a-eng.htm, including both national and by-province results. The national food CPI, for instance, increased 30.5% from 2002 to October 2012, for an average of just over 3% annually (although admittedly costs of particular food products may have increased more than the average). The October 2011 to October 2012 increase was 2.0%, a bit higher than the 1.7% increase for "energy" over the last year. Over 10 years, energy prices have increased nationally by 59.5%. You can also get data on specific products (e.g. there's an alcohol and tobacco index), and sort by province and metropolitan area if you're inclined.
Food is pilot fuel. When the price of fuel goes up, that cost should be passed on to the consumer. Therefore the cost of pilots should go up. The airlines should already be comfortable with this concept. Bill your employer for a "food surcharge".
Every so often someone posts a piece of aviaition wisdom, so profound, that it makes the hours and hours of wading through some of the drabble worth it.
This is just such a piece of wisdom. I must however work at putting more than a "food surcharge", on my bill. Perhaps a harmonized HST/GST, and FST.... Brilliant idea..
It always pisses me off to see stats can figures like inflation that don't include fuel or accommodations. So basically their cost of living inflation doesn't include the cost of living.
1. Cost of Food: Cost of food is estimated to rise approx 3-5% in 2013 due to the dought in the American Midwest in 2012. Most heavily rising costs will be affecting meats and anything that is derived from corn. Which lately is about 70% of a typical North American Diet. Perhaps its time to make small changes to your diet.
2. Cost of housing: Do not worry about this one, just wait. Canadian housing market bubble is deflating, prices are expected to come down 5-20% in the next 2 years. Vancouver and Toronto are heavily hit right now, mostly SFH in YVR and condos in YYZ. Montreal is starting, so is Ottawa. Prairie cities will decline as well, though not as much, and with a rather significant delay - up to 2 years in lagging. So just accumulate money and wait.
3. GET THE HELL OUT OF DEBT. DEBT IS BAD, IT MAKES YOU A PAWN TO THE BANKS, IT REDUCES YOUR ABILITY TO BUY A HOUSE, GET GROCERIES, FURTHER YOUR CAREER. STOP PUTTING MONEY ON THE CREDIT CARD, STOP TAKING MONEY FROM A LINE OF CREDIT, PAY IT OFF NOW. The debt model is archaic, it wreaks havoc on countries which are highly indebted (PIIGS, USA, etc). The 2010's is the decade that will favour those who are debt-free and liquid! (That means with easily sellable assets. TFSA, RRSP, Stocks, ETFs, etc. NOT Real estate). I paid off 40k in debt on a 703 job in 3 years. Anyone who puts their mind on it can do it. If you live on Flight Instructor salary, you gotta make sure you live on a flight instructor salary. If you're a rampie, make sure you live on rampie salary. You're young, you have TONS of time to live large, no sense racking up debt that will come back and bite you in the *ss later.
I leave you with this:
Greaterfool.ca
Daveramsey.com
earlyretirementextreme.com
It is not just the piloting profession that has not seen a wage increase since the 1980's, it is all workers. The only group to see pay increases have been the executives of companies... their wages have increased approximately 600% in that same time period.
Careful. Judging by some posts in another thread it would appear that everyone here is OK with that and believe that if you aren't, it's because you are some sort of lazy subversive commie revolutionary who is just jealous of the hard working executives' well deserved 600% increase.
Slats wrote:Careful... it's because you are some sort of lazy subversive commie revolutionary who is just jealous of the hard working executives' well deserved 600% increase.
Welcome the proletariat comrade.
Having a strong and healthy middle class is the only way to have a functioning economy. It benefits the rich every bit as much as it benefits the rest of society.
The results of wealth being concentrated into ever smaller groups of people, while the majority grow increasingly poor and hungry have been well documented throughout history. Wealth redistribution always happens eventually, sometimes at the point of a sword... and balance is restored to the universe... for a while.
Strobes wrote:
3. GET THE HELL OUT OF DEBT. DEBT IS BAD, IT MAKES YOU A PAWN TO THE BANKS, IT REDUCES YOUR ABILITY TO BUY A HOUSE, GET GROCERIES, FURTHER YOUR CAREER. STOP PUTTING MONEY ON THE CREDIT CARD, STOP TAKING MONEY FROM A LINE OF CREDIT, PAY IT OFF NOW. The debt model is archaic, it wreaks havoc on countries which are highly indebted (PIIGS, USA, etc). The 2010's is the decade that will favour those who are debt-free and liquid! (That means with easily sellable assets. TFSA, RRSP, Stocks, ETFs, etc. NOT Real estate). I paid off 40k in debt on a 703 job in 3 years. Anyone who puts their mind on it can do it. If you live on Flight Instructor salary, you gotta make sure you live on a flight instructor salary. If you're a rampie, make sure you live on rampie salary. You're young, you have TONS of time to live large, no sense racking up debt that will come back and bite you in the *ss later.
Good advice. Debt is the new slavery... indentured servitude to the bank. You eventually wind up working just to keep up with the debt servicing, and when that happens, you have to ask yourself if you are really a fee person anymore.
Also stated that many products: meats, Veg, Bread etc..., have all gone up 30-60% since 2002. I was surprised by these figures to be honest, and I do understand that there is inflation and that prices do rise, but in 10 years for things to double?? Wow!
Don't be mistaken here, this is not a doubling of the original cost, it is an increase of 30-60% of the price. If something was originally $10 it is now $13-16 not $20.
co-joe wrote:It always pisses me off to see stats can figures like inflation that don't include fuel or accommodations. So basically their cost of living inflation doesn't include the cost of living.
Not sure what you're pissed about: the "All Items" index on the StatsCan site includes fuel and accommodation. There are also separate indices published for "Food", "Shelter", "Transportation", and "Energy", among others.
Also stated that many products: meats, Veg, Bread etc..., have all gone up 30-60% since 2002. I was surprised by these figures to be honest, and I do understand that there is inflation and that prices do rise, but in 10 years for things to double?? Wow!
Don't be mistaken here, this is not a doubling of the original cost, it is an increase of 30-60% of the price. If something was originally $10 it is now $13-16 not $20.
You are correct. Bad bad math on my part. I guess I was being a bit too dramatic and caught up in the moment. Regardless though I think many of us in Canada, no matter what industry we are employed in, are going to have to make a significant lifestyle change. Possibly more akin to people who live in European countries. They tend to drive smaller cars, take more public transit, and live in smaller homes or apartments (Flats).
co-joe wrote:It always pisses me off to see stats can figures like inflation that don't include fuel or accommodations. So basically their cost of living inflation doesn't include the cost of living.
That's not true. You are thinking of the core CPI which excludes fuel and food.
Strobes wrote:
3. GET THE HELL OUT OF DEBT. DEBT IS BAD, IT MAKES YOU A PAWN TO THE BANKS, IT REDUCES YOUR ABILITY TO BUY A HOUSE, GET GROCERIES, FURTHER YOUR CAREER. STOP PUTTING MONEY ON THE CREDIT CARD, STOP TAKING MONEY FROM A LINE OF CREDIT, PAY IT OFF NOW.
This is true. I have some friends who every month put over 1000 dollars on cards to pay the minimum balance. Others save one or two thousand each month, to buy luxury items, or just to invest in the stock market. The choice is yours. Work for the banks, or for yourself.
The thing about debt is to be smart and disciplined about when you must incur it. In some cases It would be wise to use a credit card - of course ensuring that one pays it off right away, if only to raise one's credit rating. Having a good rating, especially being a pilot, has come in enormously useful sometimes when you're really badly in a pinch.
The problem with most people and debt is that they bite off way more than they can chew and often confuse what they need with what they want. You always see people taking out mortgages and car loans for stuff they just don't need. I should say that you got to be careful because the bank will always convince you to try and borrow as much as you can, don't fall for it. Don't take on debt to gamble with or take a chance. Smart debts are for stuff that are going to improve your station. for example when one can its preferable to pay a mortgage on a house rather than rent a place to live. Few people will make the kind of money enough to buy a house debt free. Vehicles are another, unless you're mechanically inclined, get a reliable vehicle if you need it. No bells and whistles. Most people who live in Canada will need a good vehicle to work. The only option to make sure you have is a full sized spare.
It is actually amazing how much different it sounds from Canada of 35 years ago.
Shiny is absolutely correct. But one can't help but contrast it with how much more optimism people had back then. And when a one working man was able to provide for a reasonably decent living for the whole family... including his housewife, own a house, a vehicle, and able to do time off. Very few people seem to analyze things in the longer timeframe. Yet they are really concerned about fighter jets and weird "enemies" elsewhere.
I'm actually really curious if the country comes around in my lifespan timeframe.
Shortly after I met my wife (8+ years ago), we went shopping one afternoon, to put together items for a bar-b-que, and made notes of what we paid for a bunch of the items. We have kept track of those same items over the years, it's one of those things we do, just for kicks and giggles. Prices we paid 8 years ago listed below, along with what we paid for the same items, this last weekend.
Hot House Tomatoes on the Vine. Then, $0.99lb. This weekend, $0.97lb
Chicken legs, back attached. Then, $5.67 a kilo. This weekend, 5.76 a kilo.
Bottle of wine, then, 22.85. Same wine, different year, this weekend, 22.95.
A year after we met, gas was going up like crazy, and looked to be headed for $2.00 a liter. She was driving a gas guzzler at that time, and had a significant commute to work, so, I bought her a corolla, and I remember we filled it up the first time, for $1.39 a liter. Well, that car got close to worn out last month, edging up on 300K kilometers, so, I bought her a new car last month, this time a Prius, to save on fuel. We filled it up the next day, for $1.10 a liter. ummm, ya, ok, but they keep telling me gas has gone up.
I'm sure if you tell folks enough times, things are going up, they will believe you. But the reality of it is, when we do the grocery shopping, we cherry pick out the specials, and put in inventory. Some stuff has gone up over the last few years (sugar, flour), but, most of what we buy, is very much stable in price, and has been so for quite a few years. We still buy fresh hot-house tomatoes for right around a buck a pound, just like 8 years ago. Spuds havent changed much in price either. The cheaper cuts of meat have gone up a little, as have the better cuts. The real difference for us today, we buy the better cuts a lot more these days, than we did back then. What I have seen go up significantly, is pre-packaged prepared stuff, but that doesn't matter to us, we dont buy any of that. We buy staples, and cook ourselves, it's cheaper and we end up with better food on the table.
I've been listening to the pundits on tv tell me that prices have gone up steadily for the last 10 years, but, I sure dont see it. Food prices for the basics have fluctuated with season, but, are still right around what they were november 8 years ago. Gas has gone up and down a lot, but, today it's considerably cheaper than it was just a few years ago. The only thing that's significantly more expensive, is prepared food, so the easy way to get around that, dont buy it. Buy the good stuff, and prepare it yourself.
