> 10/ When we say "inflation-adjusted wages look good," we are actually saying "if you could take your wage back to 1970 and spend it, you'd be better off than you were at the time with a 1970 wage." I mean, maybe that's interesting. But it doesn't describe lived experience.
Isn't more like saying, you can buy more units of 2020 "consumer goods" with a 2020 wage than you could buy 1970 consumer goods with a 1970 wage? His point is just the definition of inflation: $1,000 in nominal dollars more valuable in 1970 than in 2020.
Isn't more like saying, you can buy more units of 2020 "consumer goods" with a 2020 wage than you could buy 1970 consumer goods with a 1970 wage? His point is just the definition of inflation: $1,000 in nominal dollars more valuable in 1970 than in 2020.