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…
Specific inflation, like rent and food, are not down and not being beat by wages. Also the official inflation numbers don’t include food.
Furthermore, there’s decades of slippage to make up for, just in the official numbers. There is a 139 percent gap since 1974. (The first year for which numbers are easily accessible) That means that the inflation added up every year beats median wage change added every year by 139 points.
A couple months of beating core inflation isn’t going to solve something that’s been problematic since the mid 2000’s.
Good points! Isn’t decreasing runaway inflation still a boon? Also, what metric for inflation are you using? I thought the CPI included average essentials a person would buy, like food. It seems that measure is also decreasing:
How does one beat core inflation, though? Deflationary and austerity measures typically end poorly, right? I guess companies would have to pay up so that productivity gains match real wage gains.
Specific inflation, like rent and food, are not down and not being beat by wages. Also the official inflation numbers don’t include food.
Furthermore, there’s decades of slippage to make up for, just in the official numbers. There is a 139 percent gap since 1974. (The first year for which numbers are easily accessible) That means that the inflation added up every year beats median wage change added every year by 139 points.
A couple months of beating core inflation isn’t going to solve something that’s been problematic since the mid 2000’s.
Good points! Isn’t decreasing runaway inflation still a boon? Also, what metric for inflation are you using? I thought the CPI included average essentials a person would buy, like food. It seems that measure is also decreasing:
https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category.htm
How does one beat core inflation, though? Deflationary and austerity measures typically end poorly, right? I guess companies would have to pay up so that productivity gains match real wage gains.
Well yeah. That’s the basic problem. If we still prioritize corporate gains, we will never get people back on on track.