got us feeling emotions
A New Study Reveals The Hidden Cost Of High Prices
It turns out that inflation's deepest impact isn't financial — it's emotional.
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The Lede
Ever since 2022, when inflation hit a 40-year high of 9%, Americans have been pissed off about the economy. But the thing is, wages have actually caught up with inflation. Prices are moderating. Unemployment is low. Inequality is shrinking. Financially, Americans are better off than they were before prices took off during the pandemic. So why is everyone still fixated on inflation?
Key Details
- The answer may lie in a new paper published by the National Bureau of Economic Research. The new study, intriguingly, examines the emotional cost of inflation.
- In a survey of 3,000 workers, researchers found that most — a whopping 79% — just accepted the salary they were offered. Only 21% took action to secure a bigger raise.
- The study found that workers are so averse to conflict, most avoided negotiating for a raise even though they believed that doing so would have paid off financially.
