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submitted 4 weeks ago by silence7@slrpnk.net to c/news@lemmy.world

After adjusting for inflation, wages are higher than at any point in U.S. history, and after adjusting for age and sex, the percentage of the population that is employed is around its peak in U.S. history.

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[-] Whats_your_reasoning@lemmy.world 6 points 4 weeks ago* (last edited 4 weeks ago)

Yes, but it’s included in the proportion to which you buy those things. So if you’re spending a lot less on other things, but more on housing, it’s a wash for your overall expenses.

I may be misunderstanding, but doesn't spending a greater percentage on housing necessitate spending less on other things? Someone who spends 50% of their earnings on shelter has to make more careful budgeting decisions than someone who only spends 30% on shelter. With a smaller portion of income to spend on anything else, people will put off purchases that they can't afford. Using that proportional difference to claim "it's a wash" sounds like circular reasoning. At least, it doesn't seem to account for all the purchases people would have made if they weren't putting such a high percentage toward this one basic need?

this post was submitted on 17 Oct 2024
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