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Whenever you hear "the economy," ask "Whose economy?"

A classic example from The Economist:

DESPITE headwinds from the continent, Britain’s economy continues to do pretty well. GDP has exceeded forecasts so far this year, and in the second quarter was 3.1% larger than a year ago. The economy has at last surpassed its pre-crisis peak. Yet working Britons are not feeling the benefit. Real wages have fallen for seven consecutive years, and are 6.9% below their 2007 level. Britain is experiencing its longest period of pay stagnation since records began in 1855 (see chart).

And the handy chart:

Personally, I think MMTer Pavlina Tcherneva's chart makes the same point more graphically:

In any case, the Economist tries to answer the question "Who's economy?" with "Britain's economy." Oh, really? So working Briton's, whose wages have fallen 6.9% since the Great Financial Crash, aren't part of the "Britain's economy"? Alrighty, then.

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