On average, pay has risen faster than prices in recent years. But the overall picture is complicated — and it’s not just facts versus “vibes.”
Have Americans’ paychecks kept up with the cost of living over the past several years?
It is a surprisingly difficult question to answer.
According to most Americans, the answer is a clear “no.” In polls and interviews ahead of the presidential election, people of virtually all ideologies and income levels say inflation has made it harder to make ends meet, eclipsing whatever raises they have managed to win from their employers.
According to economic data, the answer appears, at least on the surface, to be “yes.” Income and earnings have outpaced inflation since the start of the pandemic, according to a variety of both government and private-sector sources. That is especially true for the lowest earners — a partial reversal of the rising inequality of recent decades.
People are pretty simple - they pay more attention to prices than income. All they remember is that “thing used to cost x now it costs y” and conclude that things are worse of. Everybody always thinks “costs are it of control”. This is a standing headline going back many decades.
I look at income. Its insane what I have to make to not be losing money each month.
otoh, prices have been out of control for decades.
When Reagan took office, ‘middle class’ was still one good job supporting a family of four. In those days, $1 million was a vast fortune. By the time Bush Sr. left office “middle class” was two jobs to support the family and $1 million was what a rich guy paid for a party.
You’re making it too complicated. People just see “things cost more now than when I was a child” and thinks that’s bad. They don’t understand inflation. They don’t understand that that’s the economy working as designed.
People understand.
When I was in high school I could afford concert tickets. I’m an adult and concert tickets are prohibitive.
There’s day to day inflation, and a super inflation in luxury goods. One of the biproducts of the billionaire class growing is that minor luxuries are being taken away from regular consumers. Normal folks used to go to the Super Bowl, now you need a private plane to afford tickets.
No, you’re oversimplifieing it. Everyone sees things getting more expensive yet my paycheque has not budged. We understand inflation. We don’t understand why inflation is simply outpacing raises. I’ve personally lost significant spending power in the last 5 years. In the 90s my mother could buy the same groceries I pay $100 for and only spend $25. She made $14 an hour. I do the same thing she did at that age yet I make $17 an hour. Her mortgage for a 1200sqf house in a half acre was $850. My Rent for a 450sqf apartment with no backdoor is $950. The math does not add up. Wages are not keeping up with inflation.
We agree completely.
People are working harder for less money.
Oh, sorry for coming at you like that then. Cheers.
Edit: noticed your name. I thought you were the person I responded to haha.
The format here is funny like that.
Enjoy the night, and eat lots of candy!