Originally Posted by
Fr8Master
Yes inflation has an outsized impact on the quality of life for poorer people. However, there are significant impacts on consumer spending that hit people in our tax bracket as well, and those changes in spending work their way through the rest of the economy.
Inflation is not a measure of butter cost as a percentage of one’s wages. Prices in stores are listed in real dollars not as a percentage of someone’s W2 earnings. Those with less hit 100% of their income being spent on basic needs prior to someone making more than the national average. However, for those making 3-4x the median income, the normal basket of goods that those folks buy begins to take up a larger amount of their total take home earnings which leaves less for discretionary spending, investment, etc.
Long story short, inflation has an impact on everyone. You’re making a dramatically different argument and I’m not sure what you’re trying to prove.
Inflation does effect everyone, but it is not linear. The quoted CPI does not, nor is it intended to represent every person in the country. It is for the average household. And yes, prices are listed in real dollars. The current average price of a new car (March 2023) is 48,008...67.7% of the "Average" households "Average" income. Certainly not 67% of any of our pilots income. According to the often spouted "high income earners have a higher cost market basket" argument, Tim Cook is driving a car that cost $67,307,216. That's got to have a sweet stereo!
My point is very simple. To argue that the TA pay raise did not keep up with inflation is incorrect. Yes there is inflation, but the CPI doesn't measure it accurately for high wage earners. That isn't its intent. We are not in the part of the bell curve where that data is valid. That's like claiming an IQ test designed for a 4 year old would adequately test the intelligence of a 30 year old.
Plenty of legitimate reasons have been given as justification for voting No on the TA. The COLA pay raise isn't one of them.