Some journalists and politicians are wondering why Americans aren't happier with the economy. But this chart says it all. It plots weekly American wages that have been adjusted for inflation. Inflation this high means most Americans get a big wage cut each week. The last time this happened was 40 years ago. Inflation also creates uncertainty, you don't know what each trip to the grocery store will cost each week. This means your income is not only smaller, what you can buy with it is less predictable. Riskier income is also a form of a wage cut. It is no wonder, despite the tight labor market, the economy is most voter's top concern.
Source: FRED
Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
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