How can inflation be so high right now when average incomes have stagnated for so long? People don’t have more money to spend. Why is inflation so high?
In: Economics
People do have more money to spend in the USA because of stimulus checks. That’s the whole point of them.
Also, average incomes haven’t stagnated. Average *real* incomes have stagnated. In other words, wages have gone up at basically the same rate as inflation. So, by definition, what wage growth we’ve had is capable of supporting the overall inflation we’ve had over the same time.
Latest Answers