But those in the middle, hit by inflation, have less to cheer about
known for her punchy hip-hop than her economic analysis, recently observed that the price of a lettuce had soared to as much as $7. “If I think that shit is crazy, I can only imagine what middle-class people or people in the hood are motherfucking thinking,” she said. Cardi B is right. Paying that much for a head of lettuce is indeed crazy.
Much of the confusion stems from different ways of measuring prices. Media coverage about inflation typically focuses on the consumer-price index , a gauge of prices for a wide array of goods and services. An alternative measure, preferred by the Federal Reserve but not by headline writers , is the personal-consumption-expenditure price index. One crucial distinction is how often they are re-weighted to reflect changing consumption patterns: only once every two years for the.
The more serious problem is that while average incomes look pretty good in America, many people have not experienced them. The gains have been disproportionately captured by the rich. In a report in November the Congressional Budget Office examined changes in incomes—a metric that is broader than wages alone, including extras such as social insurance and capital gains. From 1979 to 2019 it found that incomes for the highest quintile of households rose by 114%.
Shifts in taxation have failed to keep up with the explosive growth in incomes for America’s wealthiest. The top 1% earners’ share of post-tax incomes rose from 7% in 1979 to 13% in 2019, while the share going to middle earners has fallen. For all but the lowest quintile of Americans, taxation has become less of an equaliser over time. Tax rates have declined for the wealthiest, giving them a bigger share of the country’s post-tax incomes.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Kenya’s blood shortage and the kicking of an aid addictionWhen America cut its funding, Kenya’s blood service ran dry
Weiterlesen »
Warnings from history for a new era of industrial policyAs the world is rediscovering, careless policy can provoke retaliation, leaving everyone worse off
Weiterlesen »
America’s far right is increasingly protesting against LGBT peopleHow the battlegrounds of the culture wars have shifted
Weiterlesen »
Holidaymakers spending more as bookings risePeople planning a trip abroad for the summer are splashing out despite incomes being hit by inflation.
Weiterlesen »
Holidaymakers spending more as bookings risePeople planning a trip abroad for the summer are splashing out despite incomes being hit by inflation.
Weiterlesen »
What do electric vehicles tell us about the future of American industry?“We help people get into manufacturing so they can see it’s modern, not dark, dirty and dangerous.” Ethan Karp from MAGNETOhio explains how his company is working to change assumptions about American manufacturing, on our “Checks and Balance” podcast
Weiterlesen »