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Your chart shows that pay has been up a lot. Why wouldn’t extra pay lead to inflation? If you hypothetically doubled everyone’s pay you think that wouldn’t lea
by endisneigh 5y ago
Your chart shows that pay has been up a lot. Why wouldn’t extra pay lead to inflation?
If you hypothetically doubled everyone’s pay you think that wouldn’t lead to significant inflation in housing prices?
In any case real household income is up:
https://fred.stlouisfed.org/series/DSPIC96 https://fred.stlouisfed.org/series/DSPIC96
https://fred.stlouisfed.org/series/MEHOINUSA672N https://fred.stlouisfed.org/series/MEHOINUSA672N
- einpoklum 5y ago> Your chart shows that pay has been up a lot. No it doesn't, continue reading. Your own first data series suggests there's over ~15,000 Billion USD of personal disposable monthly income. Per capita, that would be something like 45,300 USD disposable monthly income. I suppose this takes into the account all of the millionaires' and billionaires' capital gains, illustrating how little of the overall income is garnered by the US working class. And even in the stats I quoted, you can see the unequal distribution: The high-wage-earners' wages didn't stagnate, they increased; but low-wage earners earn less. Anyway, the reason extra pay does not immediately translate to inflation is that price levels are the result of a combination of factors, including power relations of different social forces, and the distribution of income in society. If all wages were to double tomorrow, I suppose there would be some inflation in various sectors of the economy, but not uniformly, nor by anywhere near a factor of two.
- endisneigh 5y agoLiterally most of the charts show wages going up drastically for the upper echelons - the same folks buying the houses. Not to mention it’s old and real wages have gone up far more than then as shown by the FED as I’ve linked.