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Duh. All the economic dimwits (both on the left and right) who constantly harp that real wages have been falling, don't take into account the steep fall in pri

Duh. All the economic dimwits (both on the left and right) who constantly harp that real wages have been falling, don't take into account the steep fall in prices of consumer goods due to offshoring. Ofc. this does mean that US becomes the world's "bitch" eventually following the economics of things, but the alternative is essentially becoming Soviet Union or Argentina.

thotghig5896 1y ago
I prefer option 1. the world's policeman being a public servant instead of the feudal warlord that we currently seem to have.
selectodude 1y ago
https://fred.stlouisfed.org/series/LES1252881600Q https://fred.stlouisfed.org/series/LES1252881600Q Real wages haven’t fallen at all. We’re far wealthier in real terms now than ever before.
- zahlman 1y ago
  People complaining about real wages are for the most part just out of date. Your data shows about a 0.9% growth compounded per year over the last 10 years - and a 0.17% growth compounded per year over the 35 years before that. The numbers were effectively stagnant for my entire childhood and adolescence. (I'm Canadian, but I imagine the picture has the same basic shape here.)
  - selectodude 1y ago
    Being able to consume .2% compounded more per year with no increase in labor just for free is pretty nice!
Workaccount2 1y ago
Probably the most annoying thing about conversations on this topic is peoples ignorance or inability to acknowledge the insane availability of so much stuff are such low prices. A typical persons load out went from personal possessions that could fit in a microwave sized box to personal possessions that overflow the bedroom and living room of their apartment.
zahlman 1y ago
> don't take into account the steep fall in prices of consumer goods due to offshoring. The definition of "real wages" takes this into account - because they are indexed by the consumer price index, which tracks the prices of consumer goods. Some goods have dramatically fallen in price (especially if one takes the so-called "hedonic adjustments" into consideration, i.e. attempts to price increasingly more powerful computers and visually impressive TV displays on a continuous spectrum over time). Others have dramatically risen. "Consumer goods" include things like food (https://www.investopedia.com/terms/c/consumer-goods.asp https://www.investopedia.com/terms/c/consumer-goods.asp), and certainly cars have also been more expensive of late. The cost of, say, housing is also clearly not experiencing a "steep fall due to offshoring".

thotghig5896 1y ago

I prefer option 1. the world's policeman being a public servant instead of the feudal warlord that we currently seem to have.

selectodude 1y ago

https://fred.stlouisfed.org/series/LES1252881600Q https://fred.stlouisfed.org/series/LES1252881600Q Real wages haven’t fallen at all. We’re far wealthier in real terms now than ever before.

zahlman 1y ago
People complaining about real wages are for the most part just out of date. Your data shows about a 0.9% growth compounded per year over the last 10 years - and a 0.17% growth compounded per year over the 35 years before that. The numbers were effectively stagnant for my entire childhood and adolescence. (I'm Canadian, but I imagine the picture has the same basic shape here.)
- selectodude 1y ago
  Being able to consume .2% compounded more per year with no increase in labor just for free is pretty nice!

Workaccount2 1y ago

Probably the most annoying thing about conversations on this topic is peoples ignorance or inability to acknowledge the insane availability of so much stuff are such low prices. A typical persons load out went from personal possessions that could fit in a microwave sized box to personal possessions that overflow the bedroom and living room of their apartment.

zahlman 1y ago

> don't take into account the steep fall in prices of consumer goods due to offshoring. The definition of "real wages" takes this into account - because they are indexed by the consumer price index, which tracks the prices of consumer goods. Some goods have dramatically fallen in price (especially if one takes the so-called "hedonic adjustments" into consideration, i.e. attempts to price increasingly more powerful computers and visually impressive TV displays on a continuous spectrum over time). Others have dramatically risen. "Consumer goods" include things like food (https://www.investopedia.com/terms/c/consumer-goods.asp https://www.investopedia.com/terms/c/consumer-goods.asp), and certainly cars have also been more expensive of late. The cost of, say, housing is also clearly not experiencing a "steep fall due to offshoring".