Salaries go up when inflation goes up. They don't go up as fast, but they go up. That's because as the value of your money goes down (your first chart) your salary must go up in order to come close to maintaining the same standard of living. You need more money to buy the same amount of stuff.
Wikipedia: Per capita income or average income measures the average income earned per person in a given area in a specified year.
In today's fiat currency world, a chart showing increased income is also a chart showing the effects of inflation.
You have to adjust for inflation to get a more accurate picture.
And by the way, the greatest turn in your curve upward (where you mention the invention of the steam engine) happens around 1913, the year the Federal Reserve was founded and began inflating our currency.
the effect of inflation.
in SPITE of that
think of it as
Government regulations cost Americans $13,000 per person each year.
Salaries go up when inflation goes up. They don't go up as fast, but they go up. That's because as the value of your money goes down (your first chart) your salary must go up in order to come close to maintaining the same standard of living. You need more money to buy the same amount of stuff.
Wikipedia: Per capita income or average income measures the average income earned per person in a given area in a specified year.
In today's fiat currency world, a chart showing increased income is also a chart showing the effects of inflation.
You have to adjust for inflation to get a more accurate picture.
And by the way, the greatest turn in your curve upward (where you mention the invention of the steam engine) happens around 1913, the year the Federal Reserve was founded and began inflating our currency.
the feds tried to make us poor.
technology swam upstream in spite of them.
by the way
The Steam Injun was invented in 1713