The Economy You Feel, Not the One You’re Told About — Part 2

[Luis Gonzalez]

The Economy You Feel, Not the One You’re Told About - Part 2
Why Wages Cannot Keep Up With the Cost of Living

The post-pandemic economy recovered—but not evenly. Markets stabilized, output expanded, and asset holders prospered. Yet for many wage earners, real financial relief never arrived.

Wages rose roughly 10% over the last decade, yet essentials like housing, healthcare, and utilities jumped 25% or more. For a household earning $5,000 per month, essentials now claim $3,125 instead of $2,500, leaving just $1,875 for everything else. Debt temporarily bridges these gaps, but interest payments lock in lost purchasing power, turning inflation into a persistent drain.

“Growth resumed—but households started from a lower baseline, and wages never fully caught up.”

Understanding why wages cannot catch up requires examining how policy, productivity, inflation, and costs interact, shaping the economy Americans actually live in.

Continue reading at The Last Wire.

[Luis Gonzalez]

Hello!?

[Cyber Liberty]

This post fleshes out Part 1, and they are well wort a complete read!  Going over the whole set right now....

[libertybele]

Most of us are feeling the pinch - I say we are heading for a recession if not a depression, sooner rather than later.

But .... what's the answer OR are we unable to dig ourselves out of this hole?

[Wingnut]

Most of us are feeling the pinch - I say we are heading for a recession if not a depression, sooner rather than later.

But .... what's the answer OR are we unable to dig ourselves out of this hole?

There you go again.  Stop with the doom and gloom will ya.   

[Luis Gonzalez]

Most of us are feeling the pinch - I say we are heading for a recession if not a depression, sooner rather than later.

But .... what's the answer OR are we unable to dig ourselves out of this hole?

https://thelastwire.wordpress.com/2025/12/11/ai-on-a-long-wave-thrills-fomo-and-the-coming-fall/