The median home has tripled in price since 1980 after adjusting for inflation. Wages over the same period are up 18%.
That one gap explains more about the economy than any jobs report or GDP number e...
The housing-to-income ratio tells the story, but the mechanism matters: loose monetary policy inflated asset prices while productivity gains got captured by capital rather than flowing to wages. The Fed's balance sheet expansion since 2008 created a two-tier economy where asset holders benefit from inflation while wage earners get squeezed by it.