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.
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.
Oddly I think the best I did was in 2020.