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.
Here’s my take on the reality versus the perception.
I brought a good used car back in 2008. It was about twenty years old and it cost me $3,500.00 It was a great deal.
A quick look at the car ads today shows me that a twenty year old car now costs about $7,000.00
There’s a charity dinner I used to attend. The first time I got tickets they were $125.00 and the event was held in a Manhattan luxury hotel. Same event this year is $225.00 and it’s being held out in Queens.
$1,000.00 a month for rent used to be considered extravagant; now it’s the norm.
Even if people have enough to get by, they no longer feel like they are doing well. Poverty is a mind set. Dick Gregory had the line that his parents would tell him that they weren’t poor, they were just broke. If you think of yourself as ‘broke’ it means you expect things to get better. If you’re poor, you’re going to stay poor.
I went to a concert pre COVID and it was $50 a seat. Same band now is playing and it’s $300 a seat, same arena. I paid $80 for great tickets for WrestleMania like 15 years ago. Tickets to a live WrestleMania will run you a grand easily now.
1k a month rent. that seems incredibly cheap to me.
You can occasionally find studios here in Seattle for that price. If you are willing to roommate up, you can easily find 2 bedrooms for under $2k/month. Finding a house to buy is another story though…
Im surprised because maybe if you roommate you can here but efficiencty even no way. Maybe in the more dangerous areas. I thought Seattle was more expensive.
A while back, we were watching a Marilyn Monroe movie at the local watering hole. “How To Marry A Millionaire.”
At one point, Marilyn and her two buddies walk into a giant duplex apartment at a swanky Manhattan address.
Marilyn looks at the luxurious digs, the fantastic view, and the fawning doorman.
“Wow! This place must rent for a thousand dollars a month!”
The crowd demanded that line be replayed three times before the barkeep restored order.
My dad asked me recently how much I made per paycheck. I told him I take home $1100 every two weeks, assuming I didn’t miss any work because I don’t get PTO.
Dad: “You make $2200 a month?!?”
Me: Yep, I told you, I’m broke.
Dad: “You’re not broke, you’re poor.”
Me: No, I’m both.