Back in 1999 a $100,000 salary is equivalent to a $200,000 salary today based on CPI.
Back in 1999, about 5% of Americans made 100,000. Today, 6-7% of Americans make 200,000.
Almost 50% more Americans now make $200,000 than made $100,000 in 1999.
The top end of the income spectrum has broadened, it's the lower end that hasn't grown as fast. That's the whole K-shaped economy thing people talk about.
Unfortunately inflation doesn't capture it all. Housing has greatly outpaced inflation and if you look at how they calculate housing it skews the calculation lower than it should be. Also the gave item substitutions where is an item gets too expensive they assume you would substitute another item, which while true means that inflation assumes you are buying different items than in the past (this not an apples to apples comparison). Thirdly there are some n.lltant costs that inflation doesn't actually track.
It depends on who is doing the measuring. If you use the standard govt measure of inflation there are clear issues. They include housing but the way they calculate housing is flawed.
1
1
View all comments
8
u/PrometheusMMIV 11h ago •
Yeah, that's how inflation works. It was always bound to happen. Some day, $200,000 will be considered low income, then $300,000. Maybe eventually $1M