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I don't know for the US but in Europe inflation rise mostly driven by energy costs will call for a substantial adoption of wages anyhow. Inflation adjusted wage

I don't know for the US but in Europe inflation rise mostly driven by energy costs will call for a substantial adoption of wages anyhow. Inflation adjusted wages will not yet mean increased disposable income, I know.

moonchrome 5y ago
If energy price increases are dominating your budget as a developer you should probably ask for a raise anyway or consider adjusting your energy consumption. If anything the constant growth of real-estate pricing (now driven by low interest rates and inflation fears) should impact developers much more.
- Gareth321 5y ago
  He's not saying energy dominates his budget. He's saying European CPI increases are mostly due to energy prices.
  - moonchrome 5y ago
    What I'm saying is that if you're upper middle class income you are probably more concerned about the cost of housing than the cost of energy/food/etc. CPI increases started way before Russia and the energy price instability - the things energy will immediately reflect in will not be a big % of your income so increases aren't that dramatic. If my heating bill goes up 300% that's still going to be less than 2% of my household monthly income and that's during winter when we keep the heating on the entire time.
ChuckNorris89 5y ago
> but in Europe inflation rise mostly driven by energy costs For now, yes, if you happen own your own place. If you don't already own it, your rent or planned house purchase will go up as well from the increased demand from the 2.5 million of refugees already here and millions more on the way as the war goes on. Whatever is left of the EU middle class who aren't real estate owners will be obliterated.
- physicsguy 5y ago
  Even if your place is mortgaged - most people in the UK for e.g. are on short fixed interest rate deals, usually 2 to 5 years. If you're on a shorter term deal and your interest rate increases at the end, you're going to struggle to pay your mortgage.
makomk 5y ago
The European energy crisis is mainly one of supply - most of Europe chose to be dependent on Russia for their gas supply despite US warnings that Russia would use that to try and get away with invading neighbouring countries, and now they have there isn't enough gas available and it will take years to build and switch to new sources. (The market was already pretty tight due to a higher-than-expected surge in demand after all the lockdowns.) So quality of living and real-terms wages after inflation have to go down for most people because there isn't the energy to support their old quality of life. It's possible that developers and other Big Tech employees will manage to dodge this, but there's no guarantee of that.

moonchrome 5y ago

If energy price increases are dominating your budget as a developer you should probably ask for a raise anyway or consider adjusting your energy consumption. If anything the constant growth of real-estate pricing (now driven by low interest rates and inflation fears) should impact developers much more.

Gareth321 5y ago
He's not saying energy dominates his budget. He's saying European CPI increases are mostly due to energy prices.
- moonchrome 5y ago
  What I'm saying is that if you're upper middle class income you are probably more concerned about the cost of housing than the cost of energy/food/etc. CPI increases started way before Russia and the energy price instability - the things energy will immediately reflect in will not be a big % of your income so increases aren't that dramatic. If my heating bill goes up 300% that's still going to be less than 2% of my household monthly income and that's during winter when we keep the heating on the entire time.

ChuckNorris89 5y ago

> but in Europe inflation rise mostly driven by energy costs For now, yes, if you happen own your own place. If you don't already own it, your rent or planned house purchase will go up as well from the increased demand from the 2.5 million of refugees already here and millions more on the way as the war goes on. Whatever is left of the EU middle class who aren't real estate owners will be obliterated.

physicsguy 5y ago
Even if your place is mortgaged - most people in the UK for e.g. are on short fixed interest rate deals, usually 2 to 5 years. If you're on a shorter term deal and your interest rate increases at the end, you're going to struggle to pay your mortgage.

makomk 5y ago

The European energy crisis is mainly one of supply - most of Europe chose to be dependent on Russia for their gas supply despite US warnings that Russia would use that to try and get away with invading neighbouring countries, and now they have there isn't enough gas available and it will take years to build and switch to new sources. (The market was already pretty tight due to a higher-than-expected surge in demand after all the lockdowns.) So quality of living and real-terms wages after inflation have to go down for most people because there isn't the energy to support their old quality of life. It's possible that developers and other Big Tech employees will manage to dodge this, but there's no guarantee of that.