Some (like myself) would argue that in just these past few years, prices have risen while wages declined. We also have to consider rising unemployment when considering what happens to wages, as the lower-end employees tend to be laid off sooner than the higher ones, making it look like wages are steady or rising, when in fact they might be declining. I haven’t looked into the methodology yet, so not sure if they take unemployment into account and how that might affect wages as different populations are laid off at different times.[/quote]
Key word here is inflation adjusted wages vs nominal wages. Since debt of things like houses are usually bought with fixed rate, as long as nominal wages are rising, wouldn’t it make servicing these debts easier?
