After searing inflation, "American workers are getting ahead," Treasury Secretary Janet Yellen says
After searing inflation, "American workers are getting ahead," Treasury Secretary Janet Yellen says
"Americans should feel confident that inflation will come down to levels that will no longer really be noticeable or worrisome to them," Yellen told CBS News.
As of the end of 2023, the typical U.S. worker could afford the same goods and services as in 2019, prior to the pandemic, and had an additional $1,400 to spend or save per year, according to a January analysis by Treasury officials.
Demar Byas of Pontiac, Michigan referred to experts touting the nation's economic performance as a "slap in the face."
"You're celebrating these numbers, but we are struggling," said Byas, who juggles several jobs to make ends meet. "It's no relief in sight, and just say those numbers and to celebrate that, and as I said stuff becomes a slap in the face."
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Yeah I don't think this is something they're gonna be able to talk people into lol. The economy might be doing okay, but that means fuck all for the average Joe.
It always takes time for these sorts of numbers to permeate society and for people to feel a difference. This is why inflation might feel like it's more acute today when it's down to 3% than when it was at 8%, because it took time for those costs to sink in. As prices have stabilized and wages are still rising, people are going to start feeling a bit better about their economic positions, but it's going to take time for them to feel it
Still, when you say "wages are still rising" you mean companies are, on average, offering slightly higher pay to new hires. That doesn't help anyone who has been working the same job since covid started. All they see are higher prices. Averages can be useful metrics but this particular average means fuck all to a huge chunk of working people.
It's been several years since Covid started. If your job hasn't given you any annual raises in that time, what the hell are you doing still working for them?
Not being white collar who can move wherever they want and constantly get raises. There's a gigantic portion of the workforce that doesn't have that option.
As a blue collar worker ANY job change comes with a gigantic pay cut...
I've been in the same loop for 15 years now... Spend 5 years at a company, get slight raises, leave for a new job for my mental health, take pay cut, repeat.
Do you still have some notion of "faithfulness" to a company? If they don't rise your salary to market value, you ask for it. If they refuse, you find someone who will. Be the new hire.
I'm sure that works for some people but it's not a universal solution. It's like telling someone who complains of high home prices to just move somewhere else. Yeah, in the scenario where you can make that happen it will likely help but it ignores the complexities of life that make such a solution impractical for a multitude of reasons.
Well, things can't be all that bad if someone isn't wanting or willing to change things. Like I get some scenarios in life make things extremely complex but if something is really a problem, you don't sit on your hands and do nothing about it.
Yeah, trickle down economics didn’t work when Reagan was flogging it, either.
"Trickle-down economics" was about cutting taxes. Do you just lob that randomly at people to dismiss their thoughts without having to actually consider them?
That's not trickle down economics, that's math.
Whos wages are rising? Those who earn 150K+?
If it takes time, then things arent better.
Also youre full of shit. Inflation isnt down when it was 8% last year and 10% the year before and 3% this year AFTER they modified the reporting to get the better results they wanted.
Those inflation stats are YoY numbers. The rate may appear to be dropping, but inflation hasnt stopped being absurd.
Yes, that's how inflation works. Once prices go up, they don't come back down. The only time deflation happens is with Great Depression level events that would cause far more damage than the inflation.
The only way to fight inflation is to slow it down and then have wages rise enough to compensate for the higher prices.
AFTER they modified the reporting to get the better results they wanted.
Source?
Those inflation stats are YoY numbers
Yes, that's how inflation has always been reported, vs this time last year. This is because prices can be cyclical throughout the year, so comparing the to the same time last year gives a better comparison than say comparing to Christmas. Still doesn't change that inflation has returned to "average" levels across almost all sectors, while prices have even dropped for things like cars, electronics, and lumber
https://www.marketplace.org/2023/02/14/bls-index-consumer-price-index-formula-calculation/
If CPI was 10% last year, and its 3% this year, that means its up 13.3% total over 2 years ago. Getting back to 2% inflation is meaningless if MANIPULATED inflation numbers still cant hit 2% and employees cant afford to live.
Tell us you don't understand macroeconomic statistics without telling us you...ah you get the idea.
The crux of the issue here is that "the economy" as Yellen is concerned with it, is not "the economy" as that rando from Michigan is concerned with it.
Not that either is more or less correct, they're just different.
Yellen always sounds tone deaf though and they really shouldn't put her in front of a hot mic as much as they do. She's not wrong in the things she's saying...but without context and careful speech-crafting, it always lands as "Let them eat financial cake."
“Let them eat financial cake.”
Lol, this is unambiguously the message they're sending, and they dropped all subtlety.
"You dont know what youre talking about"
Then instead of just griping about Yellen, correct my mistakes.
Yes, prices are absolutely up from where they were two years ago, and many people are absolutely struggling to afford to live, because grocery prices in particular have remained elevated. What is also true is that prices aren't going up anymore like they were last year or the year before, and prices for lots of things that aren't groceries have actually come down some. What I said to start this was that as prices stabilize or come down, it takes time for that to start positively impacting people's pocketbooks
MANIPULATED
Still no source
Oh boy, the guy who tries to call me out for not knowing anything cant even click a URL
Yes, they will notice price rises immediately at purchase but only notice they have a few dollars left over when all is paid and that might be a slow trickle depending on their purchase patterns. One big purchase or repair and they could take longer to notice.