why is the S&P500 is a better comparison for salary appreciation than the consumer price index (CPI)?
the CPI only tracks everyday items like food, rent, and gas. It does not fully capture how much more expensive houses, stocks, and college have become since 2018. a raise that looks good against the CPI can still leave someone further behind on the big things that build wealth.
the S&P 500 shows how the stock market has grown. from 2018 to 2026, the index rose about 3.1 times. a $50,000 salary from 2018 would need to become roughly $156,000 today just to keep the same relative standing against that market growth.
the CPI shows whether the same groceries can still be bought. the S&P 500 shows whether the same share of assets can still be owned.
for people who care about building long-term wealth, the stock-market comparison is the clearer measure of real progress.
