Inflation or Paranoia (opens in new tab)

Josh Bivens has a good post at EPI on the so-called affordability crisis, making the obvious, but often forgotten, point that affordability is not about prices alone. It is about prices relative to incomes. That is, the price of gas, rent, or health insurance matters, but what matters even more is whether the income of workers has kept pace with the capacity of the economy to produce those things. In other words, the affordability crisis depends not just on the price level, but on the wages o...