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Household income after taxes has nothing to do with inflation as far as I know. What scares me most about this article is people taking home 8.8% less while ev
by Mistletoe 3y ago
Household income after taxes has nothing to do with inflation as far as I know. What scares me most about this article is people taking home 8.8% less while everything inflated around them and the median price of a home went from 320k in 2020 to 480k by the end of 2022.
https://fred.stlouisfed.org/series/MSPUS https://fred.stlouisfed.org/series/MSPUS
- RhodesianHunter 3y ago"Real median household income" is inflation adjusted, so yes it does.
- Retric 3y agoExcept the before tax incomes only fell by 2.3% so inflation was largely irrelevant. The real story is our median household is worse off by 6.5% due to changes in tax policy. That’s a huge shift.
- RhodesianHunter 3y agoWe know for a fact that inflation was roughly 8% during the period in question, so I'm not sure how the math works on what you're suggesting.
- deleted 3y ago[deleted]
- Retric 3y agoBecause inflation also raised people’s nominal before tax incomes. The net effect from inflation accounting from both the impact on wages and expenses was therefore negative 2.3%.
- Mistletoe 3y agoOh I totally missed the Real part, you are right thanks.
- ethbr1 3y agoIf you look at Table B-3 of the underlying, you'll see we're really talking about the lowest quintile here. https://www.census.gov/content/dam/Census/library/publications/2023/demo/p60-279.pdf https://www.census.gov/content/dam/Census/library/publicatio... Which makes sense, as afaik most pandemic-era stimulus was absolute dollars instead of income-relative. Consequently, you see a huge % impact there as it was given and then withdrawn.