69
submitted 17 hours ago by MicroWave@lemmy.world to c/news@lemmy.world

On average, pay has risen faster than prices in recent years. But the overall picture is complicated — and it’s not just facts versus “vibes.”

Have Americans’ paychecks kept up with the cost of living over the past several years?

It is a surprisingly difficult question to answer.

According to most Americans, the answer is a clear “no.” In polls and interviews ahead of the presidential election, people of virtually all ideologies and income levels say inflation has made it harder to make ends meet, eclipsing whatever raises they have managed to win from their employers.

According to economic data, the answer appears, at least on the surface, to be “yes.” Income and earnings have outpaced inflation since the start of the pandemic, according to a variety of both government and private-sector sources. That is especially true for the lowest earners — a partial reversal of the rising inequality of recent decades.

top 21 comments
sorted by: hot top controversial new old
[-] TheDemonBuer@lemmy.world 41 points 17 hours ago

On average, pay has risen faster than prices in recent years.

Fuck the average. Incomes vary far, far too much for the average to mean much of anything.

Everyone, from small business owners, to the self employed and independent contractors, to hourly wage earners who have not seen their income increase at a rate that is at least equal to the rate of inflation, every year, have had a pay cut. I can't say how many of these people there are, but I would estimate they number in the millions.

[-] HubertManne@moist.catsweat.com 3 points 13 hours ago

Oddly I think the best I did was in 2020.

[-] Kyle_The_G@lemmy.world 21 points 16 hours ago

I'm just tired of everyone asking for my money. Rent/mortgage: insane. Groceries: insane. Transportation: insane. Phone/internet: insane. I think people realized they can just charge whatever they want and get away with it so thats whats happened, everyone is squeezing every last penny out of everyone. If everyone starts doing that then theres not much left over and yeah, people feel like shit. They did everything right and its just not enough. Thats the world now.

[-] HubertManne@moist.catsweat.com 5 points 13 hours ago

and they all absolutely do not want for you to pay them, they want to pull money as they feel is appropriate for the amount they think appropriate from your bank account that you need to keep topped up.

[-] atzanteol@sh.itjust.works 3 points 16 hours ago
[-] zante@slrpnk.net 14 points 16 hours ago

Just bad metrics all round.

Averages are a terrible, terrible way of looking at this for many reasons.

The obvious one being if food and rent take 80% of your wage, and food and rent are inflated by 20% , it’s going to hurt a lot more than If food and rent take 20% of your wage.

[-] Dagwood222@lemm.ee 12 points 17 hours ago

Here's my take on the reality versus the perception.

I brought a good used car back in 2008. It was about twenty years old and it cost me $3,500.00 It was a great deal.

A quick look at the car ads today shows me that a twenty year old car now costs about $7,000.00

There's a charity dinner I used to attend. The first time I got tickets they were $125.00 and the event was held in a Manhattan luxury hotel. Same event this year is $225.00 and it's being held out in Queens.

$1,000.00 a month for rent used to be considered extravagant; now it's the norm.

Even if people have enough to get by, they no longer feel like they are doing well. Poverty is a mind set. Dick Gregory had the line that his parents would tell him that they weren't poor, they were just broke. If you think of yourself as 'broke' it means you expect things to get better. If you're poor, you're going to stay poor.

[-] BlitzoTheOisSilent@lemmy.world 2 points 7 hours ago

My dad asked me recently how much I made per paycheck. I told him I take home $1100 every two weeks, assuming I didn't miss any work because I don't get PTO.

Dad: "You make $2200 a month?!?"

Me: Yep, I told you, I'm broke.

Dad: "You're not broke, you're poor."

Me: No, I'm both.

[-] HubertManne@moist.catsweat.com 2 points 13 hours ago

1k a month rent. that seems incredibly cheap to me.

[-] Dagwood222@lemm.ee 2 points 8 hours ago

A while back, we were watching a Marilyn Monroe movie at the local watering hole. "How To Marry A Millionaire."

At one point, Marilyn and her two buddies walk into a giant duplex apartment at a swanky Manhattan address.

Marilyn looks at the luxurious digs, the fantastic view, and the fawning doorman.

"Wow! This place must rent for a thousand dollars a month!"

The crowd demanded that line be replayed three times before the barkeep restored order.

[-] SeaJ@lemm.ee 2 points 10 hours ago

You can occasionally find studios here in Seattle for that price. If you are willing to roommate up, you can easily find 2 bedrooms for under $2k/month. Finding a house to buy is another story though...

[-] HubertManne@moist.catsweat.com 2 points 10 hours ago

Im surprised because maybe if you roommate you can here but efficiencty even no way. Maybe in the more dangerous areas. I thought Seattle was more expensive.

[-] atzanteol@sh.itjust.works 4 points 16 hours ago

People are pretty simple - they pay more attention to prices than income. All they remember is that "thing used to cost x now it costs y" and conclude that things are worse of. Everybody always thinks "costs are it of control". This is a standing headline going back many decades.

[-] Dagwood222@lemm.ee 11 points 16 hours ago

otoh, prices have been out of control for decades.

When Reagan took office, 'middle class' was still one good job supporting a family of four. In those days, $1 million was a vast fortune. By the time Bush Sr. left office "middle class" was two jobs to support the family and $1 million was what a rich guy paid for a party.

[-] atzanteol@sh.itjust.works 3 points 16 hours ago

You're making it too complicated. People just see "things cost more now than when I was a child" and thinks that's bad. They don't understand inflation. They don't understand that that's the economy working as designed.

[-] Entertainmeonly 8 points 14 hours ago

No, you're oversimplifieing it. Everyone sees things getting more expensive yet my paycheque has not budged. We understand inflation. We don't understand why inflation is simply outpacing raises. I've personally lost significant spending power in the last 5 years. In the 90s my mother could buy the same groceries I pay $100 for and only spend $25. She made $14 an hour. I do the same thing she did at that age yet I make $17 an hour. Her mortgage for a 1200sqf house in a half acre was $850. My Rent for a 450sqf apartment with no backdoor is $950. The math does not add up. Wages are not keeping up with inflation.

[-] Dagwood222@lemm.ee 2 points 8 hours ago

We agree completely.

People are working harder for less money.

[-] Entertainmeonly 2 points 7 hours ago* (last edited 7 hours ago)

Oh, sorry for coming at you like that then. Cheers.

Edit: noticed your name. I thought you were the person I responded to haha.

[-] Dagwood222@lemm.ee 2 points 7 hours ago

The format here is funny like that.

Enjoy the night, and eat lots of candy!

[-] Dagwood222@lemm.ee 6 points 14 hours ago

People understand.

When I was in high school I could afford concert tickets. I'm an adult and concert tickets are prohibitive.

There's day to day inflation, and a super inflation in luxury goods. One of the biproducts of the billionaire class growing is that minor luxuries are being taken away from regular consumers. Normal folks used to go to the Super Bowl, now you need a private plane to afford tickets.

[-] HubertManne@moist.catsweat.com 2 points 13 hours ago

I look at income. Its insane what I have to make to not be losing money each month.

this post was submitted on 31 Oct 2024
69 points (100.0% liked)

News

23281 readers
3460 users here now

Welcome to the News community!

Rules:

1. Be civil


Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.


2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.


Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.


3. No bots, spam or self-promotion.


Only approved bots, which follow the guidelines for bots set by the instance, are allowed.


4. Post titles should be the same as the article used as source.


Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.


5. Only recent news is allowed.


Posts must be news from the most recent 30 days.


6. All posts must be news articles.


No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.


7. No duplicate posts.


If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.


8. Misinformation is prohibited.


Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.


9. No link shorteners.


The auto mod will contact you if a link shortener is detected, please delete your post if they are right.


10. Don't copy entire article in your post body


For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.

founded 1 year ago
MODERATORS