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Because purchasing power is quite hard to quantify. It requires you to define a set of goods the "average" consumer uses. This leaves much more wiggle room for
by dtech 6y ago
Because purchasing power is quite hard to quantify. It requires you to define a set of goods the "average" consumer uses. This leaves much more wiggle room for manipulation and politicization. [1]
Wage in currency is a lot simpler. The only real manipulation possibility is currency value and some minor tinkering in the definitions.
[1] For example a major criticisms of the euro-zone inflation index is that it excludes housing cost: https://en.wikipedia.org/wiki/Harmonised_Index_of_Consumer_Prices#Controversy_on_housing_prices https://en.wikipedia.org/wiki/Harmonised_Index_of_Consumer_P...
- LudwigNagasena 6y agoNominal wage is almost meaningless. Using something simple but meaningless instead of something meaningful but harder to calculate is nonsensical.