> Even if prices went up 20% but wages often went up by 20% I think people are still going to remember the price of things going up and feel resentful about it
Absolutely.
Plus, not all prices go up the same amount and not all people get the same wage increase. If prices go up on average 20% and wages 20%, but with large variances, you have lots of people who experience their costs going up much more than their wage. For them, it's not selective memory, or subjective perception. They feel left behind because they are.
I think you’re right but there are multiple things going own.
COVID-19 was a crisis in the world economy. The war in Ukraine has had large economic effects, particularly for poor countries that import a lot of grain. If we don’t overhaul our energy system to control carbon emissions we are going to be spending even more on food and disaster recovery.
If there was a feeling of shared sacrifice it would be one thing but high levels of inequality and a lack of political responsiveness make it hard for people to accept.
The institution of debt is particularly problematic. Maybe GM will have to sell affordable cars which aren’t so profitable, maybe the workers would take a haircut too. Trouble is that both the employer and employee have debt that the holders of which never expect to get a haircut.
Absolutely.
Plus, not all prices go up the same amount and not all people get the same wage increase. If prices go up on average 20% and wages 20%, but with large variances, you have lots of people who experience their costs going up much more than their wage. For them, it's not selective memory, or subjective perception. They feel left behind because they are.