Yeah, same logic applies to basically everything "OMG such a ripoff" then just adjust for inflation (let alone adjust for market related returns) and it's actually like 50% down.
Everyone talks about the 'miracle' of compound interest but is oblivious to the curse of inflation
- also why people who think their 10 bar 'retirement savings' are going to be sufficient in x years time when its going to basically be worth nothing...
There is also a lot of denial especially in the past few years in terms of willingly (actually, gratefully) taking paycut after paycut (which also compounds) or picking up much more work during down-sizing processes. 'Inflationary increases' and the expectation that people are 'grateful' to have a job or fear of being targeted if they speak out are real things... and things nobody is going to admit to (or can't bring themselves to admit even to themselves).
When ANY business talks about inflation, they speak about it as though they are not part of the pool driving it... and even extremely large companies that are essentially 'the entire market' behave as though they are small and poor or exclude themselves. BMW/Merc et all price accordingly and take increases every quarter if not every month... However when it comes to compensation the same does not apply: Staff (again at every company) must be happy with sub-inflation increases or with inflation numbers linked to this imaginary basket that applies to nobody.
Who is buying all this overpriced shit... cos obviously the world is still full of Porsches and Ms and even Jolions et al.... People who have businesses and can dynamically pay themselves more to counteract this and those who are at the tops of their fields able to get promotions and secure double digit annual increases (or 'inflationary' plus discretionary increases) and bonuses.
But if you tell someone they are taking paycuts year on year they will come with their simpleton logic (or ego/self esteem protection mechanism) of "but its more than I made last year so you're wrong and I am right" while simultaneously complaining that they can't afford anything anything beyond basics... cos that is the 'greedy company's' or the 'government's' or 'trump's' fault... and they aren't entirely wrong... but definitely missing a big part of the equation. It is most visible to me reading about US consumer responses... they have been fed the horseshit about the gig-economy and work 'trends' for years as though taking material pay and stability cuts is going to be good for them and the latest trend... now reality is setting in...
TL; DR - people don't want to hear they are becoming materially poorer at a more rapid rate than ever before, either willingly or because of factors totally beyond their control.
