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You're using inflation-adjusted metrics, but prices keep rising faster than inflation, and wages keep rising slower than inflation. (Personally, my preferred m
by immibis 1y ago
You're using inflation-adjusted metrics, but prices keep rising faster than inflation, and wages keep rising slower than inflation.
(Personally, my preferred measurement of inflation is "how much prices go up", but economists don't agree with me)
- twoodfin 1y agoPrices cannot rise faster than inflation by the same metric. By definition the rise of prices—by whatever debatable metric—is inflation. Wages have been rising faster than inflation, that’s link #2.
- immibis 1y agoWell, I look at the inflation numbers, and then I look at the prices, and I notice that prices consistently rise faster than inflation. And I think that observed reality outweighs any vague theoretical justification. But I'm not an economist. I notice that economics seems to be the only "science" where if the theory and reality disagree, it means the reality is wrong.