3 ms·
> They asked the question, why are people mad at inflation if the traditional measures of inflation are low It baffles me people are confused about this. Trad
by JohnMakin 3y ago
> They asked the question, why are people mad at inflation if the traditional measures of inflation are low
It baffles me people are confused about this. Traditional measures of inflation leave out certain costs of living (and borrowing as the author mentions), however, just because inflation is low NOW does not mean the last 1-3 years of it are reversed. Wages are still fairly stagnant compared to inflation, so you can't just point to an inflation graph in 2024 and be like "why are the peasants angry about their bread prices?" yet this is such a common tone-deaf refrain.
- gedy 3y agoYeah companies have been like "gee times are tough" when discussing raises in past years to deal with inflation. And now it's cooling off some they point to that as reason for no big raises as well.
- JKCalhoun 3y agoAnd reaping record profits apparently.
- deleted 3y ago[deleted]
- bumby 3y agoI think that's a valid point, but a different one than the one quoted by Summers. They claim sentiment is more closely tied to the cost of borrowing, not unmeasured costs. I am speculating here, but it may be that the American lifestyle is fueled by a revolving line of debt and thus more impacted by the cost of borrowing.
- HDThoreaun 3y agoReal median wages are up post covid. The lower class especially has done quite well on average.
- JohnMakin 3y agoThey’ve kept pace with inflation? This hasn’t been remotely the case for 30 years so this would be huge news if so.
- beiller 3y agoNot sure where the quote is from but inflation is still above the target of 2% (by traditional measures) so is that not considered high?