The economy is working perfectly fine for the people that own it.
Real wages are up for three straight years; they were unmoved or negative for nearly four decades before that. Your feelings about the economy don’t matter when the data all goes in the other direction
People are (sometimes willfully) confusing “the current status quo is fucked” with “there is no improvement resulting from the measures taken by the administration”. The former is true - the latter is not.
Current status quo is the economy that’s better than ever
Aren’t you asking for too much? Take a small win
Bollocks.
That entire political propaganda point is based on grabbing a nominal salary growth in 2023 that is trying to catch up to the inflation of 2021/22 (and the salary growth is already starting to tailing off) and adjusting to make a “real” salary growth using present day inflation which is half as much the one in 2021/2022.
It’s all based on a mathematical artifact that salary growth reflects inflation with a delay of about 2 years and just so happens last quarter of 2023 and first of 2024 are a sweet spot were 2y delayed inflation minus present day inflation yields the maximum value.
Extend those maths back 3 or 4 years and the picture is much worse but that can be “safelly” argued away by propagandists as being due to Trump. Well if that is due to Trump then so is the recent spike in salary growth since it’s pretty much a perfect match to the inflation of 2 years ago that was supposedly due to Trump.
Current status quo is the economy that’s better than ever
Every time I challenge this nonsense, that people are pushing that the economy is better than ever, they never back it up with anything. I don’t expect this to be any different. We’re kind of in uncharted territory and there is plenty of mixed emotion about the outlook for the economy.
You legit have no idea why rural Americans are so damn upset, do you?
Sure, fascism. But why fascism?
Breaks my heart to think of how Dems and Reps have completely abandoned so many of our fellow Americans, despite how deplorable and insufferable some/many may be
Peasants, We have increased your daily crumb rations by 1.2%. Be grateful for that.
Are they? I got a 3% ‘raise’ again this year and that doesn’t seem like it’s keeping up with inflation. And yes yes get a different job, blah blah.
Two things:
- Judging by the increase in prices reported by many as well as shrinkflation, Official Inflation Figures in the US might be very understated, which would make that “real” part of real wage rise be complete total bollocks, since a wage adjusted to a smaller inflation index value than reality is not in fact “real”. Considering that understating Official Inflation not only helps in political propaganda like the “real wages” one but also mathematically feeds to a higher GDP Growth figure (in simple terms: the unaccounted for inflation appear as “growth”) which is also heavilly featured in political propaganda, it’s pretty naive to think that there isn’t political pressure to “adjust” that figure down, especially in an election year.
- Independently of that, it’s perfectly possible for the average real wage (which is what’s reported) to be going up whilst the median real wage (which is more representative of most people’s experience and is not what’s reported) to be stagnant or even falling: all it takes is for the top earners to be getting significant raises to pull the average up enough that it disguises everybody else not getting such raises.
PS: To add to my second point, here’s an interesting chart. Even though it’s an overall unweighted nominal (so, not real) value and it’s a 3 month moving average (so the effects are shown delayed) you can see a spike and subsequent fall towards the trend in 2023. Now look at this inflation chart and you can see that the median salary growth is delayed from inflation and never actually managed to be as high as the actual inflation. This actually brings up a 3rd point I hadn’t considered:
- The salary growth is delayed from inflation, so what we saw in 2023 (and which is now slowing down as per the first chart) is salaries trying to catch up with the high inflation of 2021/22 (and failing) but the inflation by then was already much lower. Obviously if one completelly ignores the last 5 years (which is a common technique in political propaganda) and just calculates “real” wage growth from present day wages and present day inflation, the result will be positive, simply because salaries are still trying to catch up to the inflation of 2-3 years before. However if one adds up the median real wage growth of the last 4 years, the picture is significantly worse.
Your example is N=1
But inflation is also around 3% so why would you expect a bigger raise?
Are you seriously asking why someone would expect a bigger raise than just keeping up with inflation?
I’m asking why one person’s employment history matters when we can analyze 100 million
No you didn’t ask that, you asked why they would expect a bigger raise when inflation is around 3%. The answer is because they obviously think their job isn’t that terrible.
Your statements about it matter as much as his opinion without sources. Not disagreeing or agreeing, just seeing two opinions and no facts.
Serious question: are they up higher than inflation if you adjust for the last three years?
Yes, that’s what real wages mean, adjusted for inflation
Wage growth now is outpacing inflation, meaning we’re going in the right direction. But if you compare over a few years, many people have fallen behind and have a lot of catching up to do.
Lol
Look, peasants, wages have gone up by slightly less than 1% for reasons having nothing to do with the government, be grateful!
They went down in the 1970s and 1980s, and stagnated in 2000s, the last decade of growth hasn’t been seen since the 1990s
I definitely agree with you about the data, but people’s feelings do matter, that’s why we’re currently experiencing a vibecession.
Why would people’s feelings matter when the economy is actually good? The vibecession is literally a Conservative psyop
The entire stock market is based off investor’s feelings so why shouldn’t that also apply to the rest of the economy when market performance is a primary data point when measuring how the economy is doing?
People’s feelings affect how they act. Those actions, collectively, can have an impact on the economy (recession spending can cause a recession), politics (especially with elections in 6 months), and society in general. As they say, “perception creates reality.”
Your feelings about the economy don’t matter when the data all goes in the other direction
Except its not “all the data”. Its “the data we’ve always used to measure this up to now”.
The disconnect is that classic measurements of national economic health used to reflect the earning and spending power of average Americans. So using the same basket of measures and things that can affect those was a valid approach. In recent years those measurements don’t reflect average Americans anymore. Inflation has eaten away at the value of savings impacting older Americans. High interest rates are now acting as a double whammy for young Americans that need borrow for higher education as well as first time home buyers, but the costs of both have risen sharply in the last 20 years. So while the high cost has been a problem, the now high interest rates are a force multiplier stepping on the necks of young Americans.
I don’t disagree that Biden’s actions have improved classic measurements. Those are still valid and useful for where they apply. I disagree that those measurements still reflect the experience of regular Americans. Thats a problem that extra economic measures should be included when looking at the experience of regular Americans.
This. Buying power of the average American has decreased drastically. If you worked for the last five years and your pay has changed you’ve technically made less money every year as the power of the dollar has diminished. If you’re on a fixed income it feels even worse.
They seem to be pretty thorough
There are plenty of problems with CPI, one of which is the very issue of “feelings”. Owners equivalent rent is absolutely irrelevant to actual rent costs. It’s just how much a homeowner says they would charge if they were to rent out their place. These are not the people renting out units…they’re just someone who happened to have enough money to buy a house. WTF do they know.
Your feelings about the economy don’t matter when the data all goes in the other direction
Except its not “all the data”. Its “the data we’ve always used to measure this up to now”.
I hear you saying an apples-to-apples comparison to show a point is … somehow bad.
Sometimes I just don’t know what people want.
I hear you saying an apples-to-apples comparison to show a point is … somehow bad.
You’re gonna have to grow out of just thinking there are only two outcomes: “good” and “bad”. The world is more complicated than that. The classic indicators don’t reflect the modern average American experience anymore. They were chosen in a different time under different circumstances. They were chosen when a college education cost a couple of thousand dollars a year, a average blue color worker could buy a brand new car every two years, and a small house was easily affordable for a single income earner with the other staying at home raising kids. Clearly you can see how this is now out-of-date with modern American life.
They’re fine as a useful apples-to-apples comparison to national economic health, but today fail to show what average Americans experience.
Sometimes I just don’t know what people want.
Introduce some nuance into your worldview and that may help you understand.
But I think you can understand why three years of improvement after four decades of stagnation might not dramatically move peoples’ perception of the economy. Plus, are real wages up for everyone? Is it average real wages? Median? There’s a big difference. It’s entirely possible some people are experiencing much more real wage growth than others.
Edit: apparently a lot of you are confused. You seem to think that if wages are up for some, they must be up for all. That’s not how it works. Not everyone got a raise over the last three years. Some people did, others didn’t. Some people saw their income increase dramatically, some saw their income stay about the same, and some saw their income go down. And that’s true whether the incomes in question are measured in “real” (inflation adjusted) terms or are nominal figures.
Bro, go look up “real wages” before you bring some dumbass questions in here.
Ok, I looked it up. Here’s what I found from investopedia:
Real income is how much money an individual or entity makes after accounting for inflation and is sometimes called real wage when referring to an individual’s income. Individuals often closely track their nominal vs. real income to have the best understanding of their purchasing power.
Now that I have an exact definition, explain how anything I wrote was a “dumbass question.” Frankly, I don’t think I’m the dumbass here…
“Is it average real wages? Median?”
That’s the crux of their question, not what real wages means.
If it’s defined by an individual then how is it calculated across the entire working class for you to say it’s increasing. Median, average? Are we all sharing in that growth or only the top?
My wage has not budged in four fucking years and no wages in Oklahoma have gone up if anything they going down.
My company will not give raises and I get paid more than any other person in my field and it isn’t enough.
They literally offering jobs here at 12 an hour you be lucky to see 15 with bunch bullshit stipulations.
Cool, you’re an outlier. Get out of here with anecdotes and come back with real data.
Come Oklahoma asshole better yet look up jobs here and see what they pay. It isn’t shit. Not outliner go look at fucking jobs and what they pay. All the data you need is right there.
NO ONE IS PAYING A FUCKING LIVING WAGE. Homeless is going up everything is but fucking pay. So full of shit. Show your data and not from propaganda machine that is mainstream media.
Tell me about it. It seems like no one looks at job postings to see what companies are actually hiring at.
If they do it’s selective to their profession, or across highly educated professions. Then they can argue “well, git gud scrub.” Completely ignoring how a gigantic portion of the population is stuck working those shit paying jobs.
Wage data doesn’t come from the mainstream media you dope
He has no incentive to do better. It’s him or Trump and he knows most democrats have bought into fear politics. He has the vote no matter what. I’m personally voting for neither. And please save your time trying to convince me otherwise.
Honestly though, Venusaur is really the worst pokémon, and this move has the smallest pp in the series.
I wish you’d saved your time announcing it.
TBF even if you don’t agree that the economy is getting better under Biden, that still doesn’t say anything about his fiscal policy. His policies might not have a tangible effect for a decade. He’s not a king, he doesn’t decide who sells what and for how much.
Capitalism is strangling us. Any candidate who doesn’t admit that is unacceptable.
That’s literally their goal. Wealthy elites and corporations want to bury the middle and lower classes.
What’s your solution?
My ideal solution really doesnt matter. When you are being strangled, to extend the analogy, you dont really care who gets the guy off you.
If capitalism wants to protect itself, it better stop the strangling.
So you want competent legislation to make strangling illegal via a series of complex regulatory standards and campaign finance reform?
I don’t think that would hurt. I certainly would go further.
The point is that on the path we are currently heading, people will take any alternate system better or not. So if capitalism wants to in its own self-interest, stick around, then it’s going to have to throw the little guy some bones.
When people are desperate enough, they’ll look for any savior.
Okay but what is further?
deleted by creator
You’re allowed to say it, we will just downvote another brain dead violent revolution argument. History is full of proof on how well that tends to work out for your average citizen.
Lmao, they deleted their comment, so in the end THEY were the one who decided they werent allowed to say whatever they said
History is full of proof on how well that tends to work out for your average citizen.
Didn’t see what the deleted comment said so I’m not going to defend or attack it. But isn’t that exactly how the US came about?
And look where that got us. /s
Jokes aside, the US Independence Movement was an organized restructuring of government into democracy that could have gone by peacefully if the then British Monarchy didn’t try to control them by means of force. The USA didn’t invade the UK and tear down parliament.
No, but stop paying your taxes in America and see where you end up.
No one is stopping you here.
Lol okay, I guess Lemmy is too mainstream for you.
Public demand and competition drove prices down. Since Covid reset prices, and stockholders demand growth, companies will continue to price gouge until customers say it’s enough.
This is just what capitalism looks like.
The problem is where things are getting the most expensive, that being food and housing, the markets are captured. You can’t just say no to having food and housing.
This is where regulation is supposed to step in.
Corporate ownership of housing is a major problem that no legislator seems to be handling. The Feds should start building and selling houses to individuals themselves. I believe that is one way to lower housing costs and increasing private ownership.
Food tracks the general inflation closely, it hasn’t actually gone up faster than the inflation in any meaningful way
Food tracks the general inflation closely
That’s a fine bit of bit circular logic there. The price of food is used in the BLS’s basket of goods for calculating the Consumer Price Index (CPI). So yes, the goods used to track inflation do, in fact, track with inflation.
That said, the US economy (at a macro level) is doing rather well considering that we weathered a global pandemic, we have a war on in Europe involving one of the world’s major oil and gas suppliers and inflation has been stubbornly high. Yet somehow, wages are up and unemployment is at historic lows. Seriously, if the administration could actually do something about the housing situation and prices rising, this election would look a lot more like 2008 than 2016. But unfortunately, people vote based on how they feel, not on an analysis of macro-economics. So long as people fell like the gains they have made are being squeezed back out of them via rising prices, the incumbent president is in trouble. When you get down to it, it’s still the economy, stupid.
https://www.bls.gov/news.release/cpi.nr0.htm
It’s not like we don’t have inflation excluding food
All items excluding food and energy: 3.8%
Food: 2.2%
most of the increases were actually before this last year. im not sure that is the best time frame. at least for me the big effects where seen in a year or two of inflation but its tapped down now comparatively.
Public demand and competition drove prices down.
Prices have never gone down.
Costs for the corporations may have, but that has never (and will never) been passed on to customers.
the economy is not great but he has changed the trajectory. it took obama two terms to normalize after bush jr and unfortunately it was not so great that trump did not make it way worse. ironically mostly by not continuing gradual interest rate increases which forced the severe ones now.
360º turn, got it!
Neoliberalized Democrats wouldn’t say better. This why people doesn’t trust and believe in them anymore. They became neolib like every others and they are chasing the myth of the middle voter.
One result is abstention. The second is people voting for the far right.
