Taps Coogan – July 14th, 2022

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Back in February we noted that real wage growth had fallen to the most negative since the immediate aftermath of the Global Financial Crisis. Fast forward to today and real wage growth is even more negative, as the following chart from Michael McDonough highlights.

If you are wondering why consumer sentiment is so deeply negative, look no further. Workers are getting left in the dust by inflation and that’s assuming that CPI accurately represents people’s experienced inflation, which it certainly does not. The less you make, the more CPI understates your real inflation.

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