Feed on

Since 2006, my nominal wage has fallen by a total of 6.5% or about 0.8% per year compounded. I would note that my compensation has probably remained flat.

The average price level has increased by about 18% over this time period. Therefore, my real wage today is about 25% lower than it was in 2006.

Without my commentary on what is “causing” this or my feelings about it, note that:

  1. My wages are not falling because some rich dudes are refusing to share with me
  2. My falling wages say nothing at about whether or not I am happier or sadder today than I was in 2006
  3. You can learn nothing at all from this information about what has happened to my wealth over this time period (on the one hand, we’ve been saving a larger chunk of our lower earnings, but on the other hand, we lost a HUGE pile of money due to the burst of the housing bubble, willingly by the way).
  4. My ta x and regulatory burdens are higher today, when I am 25% poorer, than when I was 25% richer.
  5. You can learn nothing about either my on the job productivity or my off-the-job productivity, as an individual, from this observation.

Lots more to say, just thought I’d “share”this info with you during this season of sharing.

One Response to “Macro Thought from a Micro Observation”

  1. Harry says:

    By what measure, WC? You may be worse off than you think. Or maybe tomorrow you will be worse off. Think Jack Lew (take some Alka-Seltzer first).

Leave a Reply