The U.S. economy is booming. So why are tech companies laying off workers?::undefined

  • Brainsploosh@lemmy.world
    link
    fedilink
    English
    arrow-up
    16
    arrow-down
    2
    ·
    9 months ago

    I appreciate a data supported argument, and love that you actually linked sources.

    One thing that I feel is missing in most of the linked analyses is that inflation has also hit unevenly, and the price of basic goods has increased significantly more than overall inflation. Which would explain why households still have less disposable income, also the mean debt burden is much higher leading to loan costs being more common.

    • Cryophilia@lemmy.world
      link
      fedilink
      English
      arrow-up
      5
      arrow-down
      6
      ·
      9 months ago

      “Real wages” takes that into account. The term “real” (as in “real wages”, “real earnings”, etc) means the increase in money minus the increase in inflation.

      So for example the top paragraph says there’s been a “3.2 increase in real earnings”. That means there’s been a (pulling numbers out of my ass to illustrate): 7.5% increase in earnings, but also a 4.3% increase in inflation.

      • Brainsploosh@lemmy.world
        link
        fedilink
        English
        arrow-up
        6
        ·
        9 months ago

        But price increases of cereals ( bread, pasta, grains, etc.) increased by about 7,5 % last year alone, which is more than the inflation, and more than the increase after inflation.

        That’s where people might complain. They still can’t afford food, as food prices increase faster than overall inflation

        • Cryophilia@lemmy.world
          link
          fedilink
          English
          arrow-up
          5
          arrow-down
          4
          ·
          9 months ago

          That’s a fair criticism, and the Biden administration is looking into more specific action with regards to grocery stores. More work needs to be done to bring food costs to a reasonable level. I’d also support a revising of the CPI to better account for necessities like food and housing.