My parents are retired and definitely feeling the pinch. I'm not retired and increase in wages is mitigating things to a good degree.
My take is this: a lot of people are getting long overdue wage increases after decades of stagnation. It's definitely not ideal but during the pandemic, after companies cut back employment, many workers who were making poverty level wages discovered they could make just as much doing gig work and have more freedom to boot. This led to decades worth of inflation hitting all at once.
The companies whose business models were predicated on undercutting prices by keeping labor costs down were stunned to discover that those business models have become obsolete. The companies that absorbed costs to keep workers benefitted from keeping employees who didn't test the market. Companies who leaned out but had a model that permitted growth in labor costs had a fairly easy time adjusting to the new reality, that workers had a lot more leverage than they had previously. But many of the companies who were pillars of delivering low prices through low wages/overseas production (i.e. dependent on shipping/logistics that have skyrocketed) either went out of business or had to change their model entirely.
All that's to say that most families with working adults in the household have benefited from this, and although the price of food and energy spiked the price of housing, which never stopped rising at an enormous clip, has remained stable. Since that's the biggest cost for most working families the tradeoff of wages v inflation has worked out. Obviously there are other families, and no doubt retirees or others on fixed income, as well as small business owners who had no ability to pay livable wages and still earn a profit, that are reeling from this moment. I feel bad for those folks. I hope states start doing a better job of meeting those peoples needs. But after decades of seeing a race to the bottom in terms of labor costs there was bound to be a shift at some point, and the pandemic was the catalyst.
My take is this: a lot of people are getting long overdue wage increases after decades of stagnation. It's definitely not ideal but during the pandemic, after companies cut back employment, many workers who were making poverty level wages discovered they could make just as much doing gig work and have more freedom to boot. This led to decades worth of inflation hitting all at once.
The companies whose business models were predicated on undercutting prices by keeping labor costs down were stunned to discover that those business models have become obsolete. The companies that absorbed costs to keep workers benefitted from keeping employees who didn't test the market. Companies who leaned out but had a model that permitted growth in labor costs had a fairly easy time adjusting to the new reality, that workers had a lot more leverage than they had previously. But many of the companies who were pillars of delivering low prices through low wages/overseas production (i.e. dependent on shipping/logistics that have skyrocketed) either went out of business or had to change their model entirely.
All that's to say that most families with working adults in the household have benefited from this, and although the price of food and energy spiked the price of housing, which never stopped rising at an enormous clip, has remained stable. Since that's the biggest cost for most working families the tradeoff of wages v inflation has worked out. Obviously there are other families, and no doubt retirees or others on fixed income, as well as small business owners who had no ability to pay livable wages and still earn a profit, that are reeling from this moment. I feel bad for those folks. I hope states start doing a better job of meeting those peoples needs. But after decades of seeing a race to the bottom in terms of labor costs there was bound to be a shift at some point, and the pandemic was the catalyst.