yeah but it's not a great example, because actually wages aren't going up. maybe people would be able to psychologically handle inflation if it wasn't out-pacing wages. actually, now i think about it, that's not psychological at all, so the whole premise is kind of out the window, isn't it?

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manlymuppet 2 hours ago | parent [-]

Though I disagree with your conclusions, that part is irrelevant to whether the example works.

An example is not bad simply because it's unrealistic. I'm sure you've heard plenty of examples which allow you to understand the main point without being perfectly representative.

The point of this example in particular was to illustrate how wages work alongside inflation. As long as you understand the point--that inflation is relative--the specific numbers don't matter.

	▲	pasquinelli an hour ago \| parent [-]
		the point of the example was to illustrate how people fixate on the increased cost of living fron inflation and ignore their increased earnings, even if the increased earnings out-pace the inflation in their cost of living. my point is that's a bad example because we couldn't say that that's true given that the cost od living has been out-pacing wage inflation for a long time. so yeah, the example illustrates the idea, but it also underlines how the idea contradicts reality.