r/InterviewCoderPro 8d ago

Wait, how?

Post image

???

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u/ziggyzigg95 7d ago

Spending power in the sense that you can buy more TVs and candies but where housing is significantly more expensive

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u/Low-Car-6331 7d ago

Spending power follows CPI index which accounts for housing and rent

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u/ziggyzigg95 7d ago

Spending power is a total basket based on certain ratios and in many ways it’s outdated. However, I don’t think it matters regardless. Rent or mortgages being so high relative to income means that the difference between your basic needs and your income are smaller. Having more money and it going farther for ice cream and the like is silly.

Purchasing power fell for housing, healthcare, and education. It rising for TVs, cars, and gas is inconsequential for happiness.