I swear I had Econ in college, but I don’t remember anyone saying this so succinctly. It’s from a weird place too, but this quote hits home. It’s like population decline, but for money.
It was a truly baffling thing for an American president to say. And University of Michigan economist Justin Wolfers explained on MSNBC that things could get very bad as Trump’s scheme becomes reality. Wolfers ntoed that the idea of how much you can afford to buy with your income is called “real income.” And if real income falls, that’s called a recession. Wolfers went on to explain that if things decline as badly as Trump’s example, where someone who bought 30 dolls could only afford to buy two dolls, that’s called a depression.
Video from MSNBC: https://www.youtube.com/watch?v=sAZxLm6M_V0
Does the median income track the boss’s newly increased wages, then?
It’s something I’ve been thinking about for awhile now. That labor wages are stagnating but because “management” level, and higher, salaries are increasing with productivity, these Median Real Wage statistics are skewed, showing the increase.
I would have no way of separating out labor wages from the management level wages though, was just curious how it’s calculated.
It’s all included, but median tends to be less susceptible to a few outliers skewing the numbers. That’s why it’s preferred over averages.