[Gil-galad]

The basket of goods they use to adjust for inflation does not usually include house prices, which have sky-rocketed in the last few decades.

[eru]

In those kinds of debates about whether labour is more or less 'exploited' than they used to be, it's easiest to just ignore inflation:

Look at the fraction of GDP that goes to labour, capital and land at any point in time. No need to adjust for inflation this way.

Or viewed another way: you are adjusting for inflation, but your basket is the entire GDP, which you arbitrarily set to 1.