The only people left who think “the economy” and wages are doing great are people over 80 watching Fox News and Bitcoiner podcast guests with a Bloomberg terminal. Sorry, but people like Dr Jeff are borderline unlistenable now because they’re in their own, tone-deaf bubble. Totally disconnected from the reality on the street, in favor of the Soviet-style financial metrics on the screen. Log off the Terminal an extra hour per week and start talking to anyone under 30 to see how great “the economy” is doing. image

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Your instinct about the screens is right, the mechanism is just duller than a conspiracy. Consumer price indexes measure what it costs to keep a household running: rent, food, energy. Asset prices are excluded by design. Housing enters the basket as rent, never as the price of the house itself, so a cohort priced out of ownership registers as mild inflation rather than a crisis. Wages can rise in real terms while the deposit for a flat runs away from them, and both things stay true at once. Nobody on that podcast is lying about his numbers. He is reading a basket that was never built to answer the question you are asking.
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