3 ms·
I had a quick cursory glance for useful contrasting data to show how while wages in real terms have stayed flat in the US, things like college tuition fees[1] a
by yomly 8y ago
I had a quick cursory glance for useful contrasting data to show how while wages in real terms have stayed flat in the US, things like college tuition fees[1] and house prices[2] have not.
Both of these things are pretty important - college education can be life altering in terms of career trajectory, and owning a house is an entry point into the wealth ladder and also simply an escape from rent. In real terms, the cost of these has runaway over the past 20-30 years and so people's access to two crucial things that aid social mobility (wealth/housing and education) have been eroding over the years. But apparently because our money can still buy a basket of goods we should be satisfied that our lives haven't gotten any worse.
For me, and I'm pretty sure it's quite complex and I am guilty of Dunning Kruger wrt politics and economics, I simply cannot understand how inflation can get away without finding a way of placing these in the basket of goods used to calculate inflation.
[1] https://nces.ed.gov/fastfacts/display.asp?id=76 https://nces.ed.gov/fastfacts/display.asp?id=76
[2] https://www.reuters.com/article/us-usa-property-poll/u-s-house-prices-to-rise-at-twice-the-speed-of-inflation-and-pay-reuters-poll-idUSKCN1J20G3 https://www.reuters.com/article/us-usa-property-poll/u-s-hou...
- icu 8y agoExactly... flat wage growth in real terms is useless if the rise in the price of the things you need/want outstrips your ability to buy it.