Most pay raises including Social Security are based on the Consumer Price Index (CPI).This little "tool" is used by the Bureau of Labor Satistics to calculate inflation. In theory, the higher the rate, the higher the pay rate would be. The median household income in 1975 was $11,800. Today calculated the CPI method it would be $49,777. Once you calculate honestly, removing geometric weighting and hedonics (fraud), the median should be $154,000, TO HAVE THE SAME PURCHASING POWER. The government logic behind this is simple: If the price of steak is too high, you will buy hamburger, thus there is no change in your budget. Neat, huh? Please notice that the Federal employees are getting the "REAL" rate of inflation, while the rest of us aren't. Our standard of living is decreasing.
Magooch and others are right, watch for rapid price inflation soon. Thanks to Bernake and company, agriculture commodities are rising by 12 to 60%. This $600 BILLION (QE 2)in new dollars will see to that.
Heather, I'm happy for you being able to increase your share of dollars, especially in a healthy way.
The Hermit