Why Does My Paycheck Feel Smaller Every Year?
why does my paycheck feel smaller every year wage stagnation inflation purchasing power raises taxes benefits deductions real wages economy workers pay
YEET Magazine
Why Does My Paycheck Feel Smaller Every Year?
Your paycheck feels smaller every year because it is smaller, in real terms. Even if your salary has risen, the cost of the things you buy has risen faster.
This is called wage stagnation. The nominal number on the paycheck grows, but the purchasing power does not. In some years, it shrinks.
Several factors contribute: inflation, rising healthcare premiums, higher rent, and the slow pace of wage growth relative to productivity. The gap between what workers produce and what they are paid has widened over decades.
For the broader context, see our coverage of why everything costs so much now and why inflation hits lower income families harder. For a personal account, our piece on a side hustle that pays the rent shows how some workers are responding.
What do you think? Has your paycheck kept up with the cost of living? Share your answer.
Source: YEET Magazine