undefined

points

[-]

If you factor in an extra 1.4% inflation per year into the numbers, you're not going to see any "real" wages growth over the 40 year period.

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.

by nixon_why694 hours ago|

prev|

[-]

Yes, if I ignore that point then the top line number is the same. But it's a choice to compute top line CPI the way they do.

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.

by ch4s33 hours ago|

parent|

[-]

The data shows that inflation inclusive of housing, education, and healthcare isn't that much higher than CPI, which is because CPI already includes shelter, which accounts for ~36% of CPI.

You assertion that CPI doesn't include housing is just wrong.

by nixon_why693 hours ago|

parent|

[-]

I'm not asserting they don't include housing. I'm saying housing is non-optional, so having low inflation on flat screen TVs is cold comfort if you're struggling to pay rent. The basket of goods isn't the same for everyone.

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?

by ch4s32 hours ago|

parent|

[-]

> I'm saying housing is non-optional, so having low inflation on flat screen TVs is cold comfort if you're struggling to pay rent.

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.