It’s the value of the US dollar over the past 5 days. This is too short of a timespan to assign much meaning to this, but if it keeps dropping, US citizens will eventually have to spend more dollars for the same goods.
In theory, they would also receive more dollars from their job, since they still do the same job and that should be valued the same. But in practice, that’s going to naturally lag behind and companies also have to spend more dollars for resources, so they might never hand out a big enough number of dollars to match the current pay.
What does this graph means?
It’s the value of the US dollar over the past 5 days. This is too short of a timespan to assign much meaning to this, but if it keeps dropping, US citizens will eventually have to spend more dollars for the same goods.
In theory, they would also receive more dollars from their job, since they still do the same job and that should be valued the same. But in practice, that’s going to naturally lag behind and companies also have to spend more dollars for resources, so they might never hand out a big enough number of dollars to match the current pay.