Sativied
Well-Known Member
Yeah, I'm aware of the focus on inflation and absolute prices rather than purchasing power. Gas prices are not a means to measure the economy. I wanted to include it in my post, but couldn't find a good link/screenshot. There's this one talking head I listen to, often on repeat as the tv channel he's on is my background tv during most afternoons. He was asked about Biden's shrinkflation piece before the super bowl. Down-to-earth reasonable decent guy thus clearly favoring Biden, he argued that of course shrinkflation and inflation (paying the same for less or more for the same) is effectively the same thing, inflation, and, more importantly, what really matters is purchasing power, real wages.The thing most myopic Americans see is that everything from gas to restaurant food to a new pickup costs 1.5x what it did just before the pandemic. In that time my monthly check went up about 1.15x.
The correlation with that man’s ouster is read by so many as causation.
That is why a mendacious framing of the economy is working so well for the Republicans.
Not even 'immigrants' is a more covered issue in NL and Germany than purchasing power. Before elections, most political parties submit their plans to an independent bureau that calculates what the effects will be on the economy, and more importantly, purchasing power. What can you buy with your monthly income. And overall, US, Biden, is doing far better in handling that too:
- Real wages have risen since before the pandemic across the income distribution. In particular, middle-income and lower-income households have seen their real earnings rise especially fast. And in the past 12 months, real wages overall have grown faster than they did in the pre-pandemic expansion.
- Household purchasing power has increased as a result. In 2023, the median American worker can afford the same goods and services as they did in 2019, plus an additional $1,000 to spend or save—because median earnings rose faster than prices.
- The U.S. economy now has over 2 million more jobs than pre-pandemic forecasters expected. Therefore, more and more workers are benefitting from increased purchasing power, thanks to the strong and resilient labor market.
- This pattern of rising purchasing power is particularly American: other advanced economies have generally seen lower, and in many cases negative, real wage growth.
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