[TimPC]

Salary inflation is much trickier to measure because it is confounded by years of experience increasing, getting promotions, etc. The distribution of the working population by seniority also changes over time so it's not self-correcting across the distribution. Assuming you have a good way of measuring it, (salary inflation/price inflation) would be an interesting Financial Quality of Life measure.

[alephnerd]

You can use real median household income [0] and real median personal income [1] to gauge potential salary inflation (real meaning CPI adjusted).

The median American household and American has gotten significantly richer than in 2005, but in the 2020-23 period, income growth slowed due to the pandemic and the subsequent slow restart of the economy.

The last time we saw similar retractions were during recessions like the 1990-93 recession, the Dot Com Bust, and the Great Recession. Turns out the "vibe check" in the early 2020s were right.

Tl;dr - the median American feels poorer in the early 2020s than they did in 2019, but they have much more earning power than they ever did before 2018. I would not be surprised if this played an outsized role in voter dynamics in the 2024 election

[0] - https://fred.stlouisfed.org/series/MEHOINUSA672N

[1] - https://fred.stlouisfed.org/series/MEPAINUSA672N

[mitthrowaway2]

(Just an aside that median household income will of course be affected by the changing composition of households towards multi income families.)