According to a report by Dave Flessner in the Chattanooga Times-Free Press, wage gains for most Chattanooga workers stayed ahead of inflation last year. The article cites government figures from the U.S. Bureau of Economic Analysis which reported Monday that wages and benefits paid to the typical Chattanooga worker rose 3.7 percent during 2007 while consumer prices, on average, rose 2.6 percent.
Interestingly, the article in the paper included a more positive headline: "Area wages beat inflation for now." As it appeared online, the article had a negative title: "Chattanooga: Economy to pinch pocketbooks." Online, the headline mentions nothing about the positive news from the government report. The online headline touts only the follow-up point that the good might not last. In classic style, article emphasizes the cloud that the silver lining. The format for such reporting has become trite. "Good news, but there's bad news behind it."
Similarly, article emphasizes that Chattanooga wages trail the national average: "Despite the wage gain, however, Chattanooga’s average pay of $36,077 was 17.8 percent less than the U.S. average of $43,889 last year." The article also emphasizes that Chattanooga pay trails that of Atlanta, Huntsville, Nashville, Memphis and Knoxville.
What the article fails to point out is that Chattanooga's cost of living is also less than the US average by about the same percentage, and that Chattanooga cost of living is less than Atlanta, Huntsville, Nashville and Knoxville, and comparable to Memphis. According to data accumulated by AOL Real Estate, Chattanooga's cost of living is 82.5% of the nation's cost of living, or about 17.5% less than the US average. The cost of living for the other cities: Atlanta, 103.8%; Huntsville, 87.7%; Nashville, 89.5%; and Knoxville, 87.2%. Only Memphis at 81.2% has a lower cost than Chattanooga among those cities that the article sites as those which Chattanooga trails.
The article does note that Chattanooga’s wage shortfall may diminish as higher-paying manufacturers move into the region. Such manufacturers include Volkswagen of America, Alstom Power and other automotive and nuclear-power producers. The article quotes Mayor Ron Littlefield: “We’re certainly not immune to the recession, but Chattanooga should fare better than most communities.”
Chattanooga's prospects for beating the recession quicker than other parts of the country make Chattanooga real estate a great place to look for good real estate investments.
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