this post was submitted on 09 May 2024
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[–] [email protected] 31 points 6 months ago (3 children)

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.

[–] [email protected] 8 points 6 months ago

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.

[–] [email protected] 4 points 6 months ago (1 children)
[–] [email protected] 5 points 6 months ago

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.