If housing, healthcare and education are outpacing the topline inflation number, a lot of marginal families will be squeezed. The cheap LG TV doesn't really make up for it.
So the 1984 income is 60,420, if you calculate 60420 * (1.014)^40, which is assuming there's a 1.4% difference between the two disputed methodologies, you'd get about 105k. But the actual 2024 income is 83,730. Which I think means that if you take the non-CPI methodology to calculate real income growth, it's actually negative.
I'm not saying one method is more correct than the other (I don't know enough about economics to judge), but 1.4% annual difference matters a lot when you're talking about four decades.
I'm explaining why people are still squeezed despite the top line number saying they shouldn't be.
When data and anecdotes disagree, then double check the way you compile your data.
You assertion that CPI doesn't include housing is just wrong.
It's been like 5 years now of low consumer sentiment and increasing consumer debt while people who don't feel it are flabbergasted, the top line CPI number is fine, why aren't people happy?
You're missing the point, rest is included in that top line low inflation number.
> the top line CPI number is fine, why aren't people happy?
secular stagnation? Cultural malaise? Expectations formed by ZIRP.
I'd also point out that the US has seen better wage growth and less inflation in recent years than the rest of the OECD, by comparison we're doing OK-er than our peers.
I strongly dislike Donald Trump, and he has done some terrible things to our country. But my dislike of him also makes me more likely to notice the bad things happening around me.
It happens with conservatives too. Ask my conservative family about how frequently men pretend to be trans and go into women’s bathrooms to get a peek. Ask them how often non-citizens vote. Ask them how the current crime rate compares to when they grew up.
I have asked this question many times to the doomers, and honestly don’t think I’ve ever gotten a good answer: if you had to be born as a random human somewhere on earth, and the only thing you get to choose is the year in which you’re born, what year would you choose? You can’t choose your race, intelligence level, physical abilities, parents, socioeconomic status, country, gender, sexual orientation, etc. Only the year.
So doomers: if the world is completely fucked up and going down the tubes, when would you prefer to have been born? Huge bonus if you can actually give some data showing that the average human was better off during whatever time you choose.
M2 change is a much better measure in my opinion. Using M2 is literally comparing supply of item to supply of cash which could immediately buy it. When scaling SPX or GC1! by M2SL[0]/M2SL, you get a surprisingly flat time series over decades, which reads to me that the effects of the change in M2 are being filtered out of an otherwise exponential price curve.