@inthehands @phocks @wwahammy This graph is of real wages, that is, adjusted for inflation. So what you are seeing is the Korean War inflationary surge.
That was mis-handled, and the 'credit crunch' caused a short recession through to 1Q1954.
I do think this graph overstates the effect of inflation on real wages for 1951, and in investigating that the various prices series is where I would start.
These long-run graphs are open to these sort of data issues as modern economic statistics were established post-war (as a side effect of the 1944 Bretton Woods Agreement).
@glent @inthehands @phocks
I see, however probably this should not be adjusted to inflation as we're basically observing the price of a commodity compared with salary.
Wouldn't it make more sense to have a single line which is home price / real salary?
@rastinza
https://fred.stlouisfed.org/graph/?g=1Q8cb
Thats the Fred graph of median house sale price divided by median household income, both in nominal terms as would be rational.
unfortunately it only goes back to 1984
still tells a similar story
@glent @inthehands @phocks
@rastinza
yes thats exactly correct and both in nominal terms. Economists have yet to discover the Buckingham Pi theorem or dimensionless ratios... 😔
@glent @inthehands @phocks