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Joined 1 year ago
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Cake day: July 11th, 2023

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  • I think that the problem is that the metric used for measuring the wages growth is an average:

    In a society where most of the wealth goes to a few, an average is not necessarily a good measure:

    I like this image from this article from the fed

    showing the part of the population having raises above the CPI

    They have the following remark below this graph:

    For example, about 57 percent of the WGT sample had positive real wage gains during 2019, whereas during 2022, only 45 percent of people had positive real wage growth. Put another way, despite higher median nominal wage growth, the share of people with positive real wage growth between 2019 and 2022 due to higher inflation fell by 12 percentage points.

    Edit, from the bottom of the article:

    Your own wage growth experience might not look like that of your neighbors or your colleagues, and it might not resemble that of the person with median wage growth either.