Explain This To Me Like I'm A Complete Idiot, Part 15: No Millennial Left Behind?

[paulkienitz]

21. We've been undervaluing inflation for decades

Consumer goods made by machines get cheaper. Real wages drop but you can still afford to fill your house with junk. You don't see how much earning power you've really lost until you try to buy something that can't be made by a robot or a third-world laborer, such as an education or a house or a hospital stay. Wages aren't just stagnant, they've been driven downward by a huge distance. They hide this fact by basing the inflation index on consumer prices for cars and TVs and stuff, which cost far less than they used to because it takes far fewer person-hours to make each unit than used to be needed.