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.
A while back, we were watching a Marilyn Monroe movie at the local watering hole. “How To Marry A Millionaire.”
At one point, Marilyn and her two buddies walk into a giant duplex apartment at a swanky Manhattan address.
Marilyn looks at the luxurious digs, the fantastic view, and the fawning doorman.
“Wow! This place must rent for a thousand dollars a month!”
The crowd demanded that line be replayed three times before the barkeep restored order.