Meanwhile in China

Originally posted by Scott th Ratbag: ↑

an excellent point thoroughly made. GA+

As all averages go, they take in the broader class of x (goods or wages) levelling out the rises y + z and the falls u + v.

With the rises in costs of foods balanced against the falls in relative non-consumables such as mobile phones, the prices of which are more geared to market ability to pay rather than COGS + tax + mark-up, the CPI has become meaningless in terms of a measurement of the cost of living.

So with wages, the wonderful pay rises of the executive class balance out the falling $ value of the labourer but excludes the job insecurity and hours available to earn a few $s. Neither does this include the cost of getting to work - which in Sydney has become a major expense with all the toll roads if you drive. If you're on an exec package its likely you've got a car, rego, insurance, fuel and tolls paid for by the co.

I don't hold this against the exec class, but grieve for the disadvantaged whose lives are made harder by the reduction in regulation which formerly ensured lower paid people at least had a decent expectation of a full working week.

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Yes, you understand precisely. 99.5% don't but rail at the moon, economists or lefties. Its hidden behind an aggregate figure or 'they' ignore what don't like. I get that it is esoteric and dull and people think 'what difference does it really make?' but these measurements underpin our economic reality and responses, many of which are automatic beyond politics. The makeup of the measurements are both unrelentingly biased to the 'capital'/investment/executive classes. Over time, increments create systemic inequality.

The question then is whether it is an accident or something other?

Accidental? In Australia, maybe as I think these are globally agreed upon. Perhaps, the people who make the rules are also beneficiaries who intuitively bias themselves and lack the desire nor care about its socioeconomic implications. Unlikely.

It is overwhelmingly likely that these are manufactured outcomes at a global level. The implications of these measurements are very well understood within the Government-Financial complex, OECD, World Bank, IMF. It ensures they keep the ball down their end of the field and we see economies degrading, on QE life support, yet asset inflation to at least maintain their wealth equivalency as currency valuations fall. While our bank accounts and real wages decline in currency terms.

Just my 2cents. Happy to be proven wrong.