If my pay rate doesn’t automatically increase to match inflation, then any inflation is bad from the consumer perspective. It may be good and reflection of a growing economy, but if that doesn’t reach the individual…
My costs have gone up 30% in the last 4 years, just to run my household. I’ve seen some things double in cost, a number of things are up 50%, while most are up high single digit to double digit percentages (quite a bit through shrinkflation, because I track that too).
I’ve tracked all my costs for years (mobile apps are great), so can tell what I paid for almost anything 5 years ago.
If my pay rate doesn’t automatically increase to match inflation, then any inflation is bad from the consumer perspective
That’s the thing, economists will say that modest inflation is fine, necessary even, but it’s only “fine” for people whose income increases every year at a rate that is at least equal to the rate of inflation. Anyone who doesn’t get a raise that at least keeps up with inflation is actually getting a pay cut. Many people do get at least a cost of living raise every year, but many people don’t, and those people get poorer every year.
But even people who are lucky enough to have an income that keeps up with inflation are just staying in place financially. They’re not getting any poorer, but they’re not getting any richer either. Working your ass off in a job that slowly kills your soul, just to run in place, doesn’t make people feel great about things.
If my pay rate doesn’t automatically increase to match inflation, then any inflation is bad from the consumer perspective. It may be good and reflection of a growing economy, but if that doesn’t reach the individual…
My costs have gone up 30% in the last 4 years, just to run my household. I’ve seen some things double in cost, a number of things are up 50%, while most are up high single digit to double digit percentages (quite a bit through shrinkflation, because I track that too).
I’ve tracked all my costs for years (mobile apps are great), so can tell what I paid for almost anything 5 years ago.
Tell me again inflation “isn’t that bad”.
That’s the thing, economists will say that modest inflation is fine, necessary even, but it’s only “fine” for people whose income increases every year at a rate that is at least equal to the rate of inflation. Anyone who doesn’t get a raise that at least keeps up with inflation is actually getting a pay cut. Many people do get at least a cost of living raise every year, but many people don’t, and those people get poorer every year.
But even people who are lucky enough to have an income that keeps up with inflation are just staying in place financially. They’re not getting any poorer, but they’re not getting any richer either. Working your ass off in a job that slowly kills your soul, just to run in place, doesn’t make people feel great about things.