it sucks to be in the bottom 3/4 that has been inflated on. top earners have inflated along with asset and commodity prices. top earners have absorbed all the wage inflation that would have otherwise been spread around. i guess this is what they mean by stagflation; 3/4 stagnating in wages while prices across the board are inflating. imported chinese goods excluded.
prices of goods can inflate because the *wealth* of the bottom 3/4 is being diminished. that is, people still have the wealth to pay for inflated goods without dipping below sustenance levels. that would explain the zero savings rate, anyway… no savings = no wealth = spending to support inflation.
