| > If household income is only just reaching 2019 levels, but food has gone between 100-200% up in price[0], then that means the effective buying power has been cut in half if not more (depending on the good). No, the chart I linked is income after accounting for price increases. That's what "real income" means. The other thing we can see in surveys is that people think their personal economic situation is good, but then think the economy is bad anyway. So they don't generally believe their income is down at this time, though they do remember it being down recently. > No, it’s not. It returned to a more normal level, but the effects don’t just magically disappear. Inflation is a rate. When the rate goes down, then it's over. ("disinflation") When it goes negative ("deflation") it means a severe economic crisis like the one in 2008. > They’re going to react to it as long as it’s still affecting them, obviously. No one likes high interest rates. Luckily they've been going down all this year. I think savers like them though. > And that’s part of a handful of reasons there’s been more movement out of blue states. Wellllll… the US has a gigantic welfare program for homeownership called 30-year fixed mortgages. Many people bought homes in 2021 when rates were low, so it literally doesn't matter to them if it goes up after that. It does make it harder to move though, or to borrow money for other things. The housing costs issue more affects young people who want to move out of their parents' places. > This is just hypocritical. So the people you disagree with are liars because they disagree with you? It's because they immediately switch. I also thought the economy was good in 2019, but it was definitely bad in 2020. (And worst of all in 2008.) Also no, I didn't say they were liars, just that it's a possibility. |