President Biden criticized news coverage of the U.S. economy as he faces growing backlash from voters over his handling of inflation. In brief remarks Saturday before boarding the presidential heli…
Yeah that annoys me too. The biggest gap in understanding is that inflation is a measure of velocity. So you have one side expecting prices to fall and the other side expecting wages to magically beat the baked in cost of living increases from previous years after a few months.
One way to make it clear is to take the inflation of the median wage and compare it to core inflation. By that measure wages are down 139 points since 1974. Mild deflation while wages hold steady wouldn’t be an inappropriate way to fix that gap without printing more money or taking anything directly from the wealthy. (Something America is historically bad at.)
Yeah that annoys me too. The biggest gap in understanding is that inflation is a measure of velocity. So you have one side expecting prices to fall and the other side expecting wages to magically beat the baked in cost of living increases from previous years after a few months.
One way to make it clear is to take the inflation of the median wage and compare it to core inflation. By that measure wages are down 139 points since 1974. Mild deflation while wages hold steady wouldn’t be an inappropriate way to fix that gap without printing more money or taking anything directly from the wealthy. (Something America is historically bad at.)