this post was submitted on 31 May 2024
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submitted 5 months ago* (last edited 5 months ago) by balderdash9 to c/[email protected]
 
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[–] [email protected] 13 points 5 months ago

Inflation vs income

Income hasn't kept up with inflation, so you have a widening gap

The prices may be proportional, but the average "purchasing power" has decreased. Most family units have more than a single income now, but they still struggle.

Inflation goes up (which devalues our income), but our wages have gone up much slower... so we have a widening gap of "purchasing power" that people's budget can feel

The "prices" may be proportional, but the ability to afford them is certainly not