You're earning more and affording less, and it's not because you're bad with money. The latest inflation numbers show that most American workers effectively took a pay cut this year, even if their salary went up.
Jadrian- I read this: "You’re experiencing something that has a name", and I avidly read the rest of the article, which was really depressing, but economics is the dismal science, so OK. But what is the name? I was hoping for something snappy. There is an existing term "Shrinkflation". I kinda like "Inflation Evaporation". If you're looking to name Our Time In the Economy, you could go for "The Raise Recession". A high-falutin' Econ term might be "Nominal Illusion". But maybe my fave is referring to the wage increase that isn't: "Phantom Raise".
I'm not nearly creative enough to actually name things! I really just intended "real wages" to be the term to explain how people were struggling despite having a pay raise.
I am not following your argument, or your figures. The trend line is clearly for increasing living standards since 2016, with a statistical spike in the pandemic. I can easily google trends earlier for the past 25, 50, 100 and the same basic trend plays out.
The data clearly reveals improving living standards over time with minor bumps up and down on the trend line as certain economic factors play out (gas spikes, etc).
I've been reading lots of arguments about vibecession which imply that US real wages have been growing well. But the data here suggests around 5 per cent over 10 years, which is not nothing but also not impressive. Given variation in consumption patterns, lots of people going backwards
"I didn’t write this post to make you cynical."
Waaaaaaay ahead of you
Jadrian- I read this: "You’re experiencing something that has a name", and I avidly read the rest of the article, which was really depressing, but economics is the dismal science, so OK. But what is the name? I was hoping for something snappy. There is an existing term "Shrinkflation". I kinda like "Inflation Evaporation". If you're looking to name Our Time In the Economy, you could go for "The Raise Recession". A high-falutin' Econ term might be "Nominal Illusion". But maybe my fave is referring to the wage increase that isn't: "Phantom Raise".
I'm not nearly creative enough to actually name things! I really just intended "real wages" to be the term to explain how people were struggling despite having a pay raise.
I am not following your argument, or your figures. The trend line is clearly for increasing living standards since 2016, with a statistical spike in the pandemic. I can easily google trends earlier for the past 25, 50, 100 and the same basic trend plays out.
The data clearly reveals improving living standards over time with minor bumps up and down on the trend line as certain economic factors play out (gas spikes, etc).
No doubt there has been growth over the past 10 years and even the past 100 years. You can learn more about that here: https://www.mondayeconomist.com/p/how-sandwiches-can-explain-100-years
This week's article is really about a lack of growth over the past 12 months.
I've been reading lots of arguments about vibecession which imply that US real wages have been growing well. But the data here suggests around 5 per cent over 10 years, which is not nothing but also not impressive. Given variation in consumption patterns, lots of people going backwards