WCPO: UC economist says wages can’t keep up with inflation

Michael Jones says consumers can purchase less than they could a year ago

Multiple disruptions to the U.S. economy are posing problems for consumers, according to Michael Jones, PhD, associate professor of economics at the University of Cincinnati Carl H. Lindner College of Business.

“Today, consumers could purchase about 2% less than they could a year ago,” Jones told WCPO.

michael-jones-headshot-2021

Michael Jones, PhD, associate professor of economics at the University of Cincinnati Carl H. Lindner College of Business.

Inflation is at 7.9%, per the Bureau of Labor Statistics. Problems resulting from the COVID-19 pandemic, supply chain shortages and the war in Ukraine are driving the price of some products above the inflation rate.

“It’s primarily being goods relative to services,” Jones said. “And these are used cars, new cars, furniture, food at home. All of these categories are above the average inflation of 7.9%. Services like health care and education (are) actually quite low.”

Jones noted supply chain issues are being resolved in certain sectors of the economy, but pent-up demand from consumers is still prevalent elsewhere.

“They’re no longer able to afford that new car,” Jones said. “And as demand starts to drop because they can’t afford the borrowing cost, then you’re going to start to see those prices go down.” 

See more from WCPO.

Impact Lives Here

The University of Cincinnati is leading public urban universities into a new era of innovation and impact. Our faculty, staff and students are saving lives, changing outcomes and bending the future in our city's direction. Next Lives Here.

Related Stories

2

Residents concerned about high concentration of low-income...

May 16, 2024

Efforts to build more affordable housing in Cincinnati have created concerns for residents as low-income housing has been concentrated in some of the city’s poorest neighborhoods, WCPO reported. Gary Painter, PhD, the academic director of the University of Cincinnati’s Carl H. Lindner College of Business real estate program and a professor of real estate, said a complaint against the city could lead to positive outcomes.

Debug Query for this