JV Last flagged that in his newsletter today. He notes:
I do not know what a car wash manager does, though I’m sure it is a big job. And yes, $125k doesn’t get you what it used to. But also, this seems pretty good? An indicator that salaries are moving in this tight labor market?
Did you see any giant, 12-foot-tall skeletons on people’s lawns before Halloween? I’ll answer for you: Yes, you did. They were everywhere. Rich towns, poor towns; trailers and mansions. The skeleton is called “Skelly” and it’s a creation of Home Depot and it became an absolute craze.
These skeletons cost $299.
Not to belabor the obvious, but if you are spending $299 on a plastic skeleton for your yard then you do not actually believe that we are in the midst of an economic calamity. Regardless of what you say on a survey.
He goes to great length to assure readers that he’s not saying that everyone is doing well but instead that most people are doing well. He writes, “people are saying that the economy is bad, yet they are acting like the economy is good” which I agree with.
And he points to a piece by Economist Claudia Sahm on this bizarre dichotomy in which she wrote:
The majority of Americans are better off financially now than they were before the pandemic. Full stop. Not every American, but the majority. That’s true across demographic and income groups. It’s in the aggregate and individual-level data:
-Millions more good jobs. -Bigger paychecks, even after inflation. -Consumer spending back on strong pre-Covid trend. -Historic increases in wealth, including at the bottom. -Lowest debt burdens on record.
It’s become a controversial view, and frankly, if you had asked me in April 2020—when unemployment hit almost 15%—that three and half years later, we would be in a better place than February 2020, I would have said no. But much has happened since then, and information that we now have from a wide range of families suggests that most got ahead; among them, some who had been falling behind for decades.
I’ll be honest. This is driving me nuts. I know that when you go to the store some things are more expensive than they used to be. Your grocery bill is higher. Clothes aren’t as cheap as they used to be But I guess that being an old person this just doesn’t strike me as all that surprising. It’s been happening my whole life. There was a time in my life when movie tickets were $3.00. I remember getting a Big Mac super value meal for about $2.50. Gas was a bout $1.30 a gallon. My first apartment was $125.00 a month.
Yes, I’ve been around a while. And, granted, I didn’t make much money in those days when I was young so it wasn’t like I was rolling in dough. And I know that inflation takes a real bite out of people who are on fixed incomes, like older people on social security. It’s not all rosy and great for everyone.
But honestly, I don’t think any of this is really about the economy. It’s just that it’s become a mantra that symbolizes the discontent with everything else whether you are upset with “woke” drag queen story hours or right wing militias or Donald Trump or COVID or just the general sense that the world is going to hell in a hand basket. There are legitimate reasons for people to be unhappy. But they are blaming their unhappiness on the economy and I don’t think that’s really the reason. It’s frustrating to try to deal with that.
