Can someone please explain to me, in laymans terms, the difference between "real wages" and "money-wages"?

Can someone please explain to me, in laymans terms, the difference between "real wages" and "money-wages"?
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1 Answer

Answer :

** Disclaimer: I’m not an economist! The way I see it used is like this: If I get paid $20 per hour, this is the nominal wage. The real wage is the purchasing power of that $20. In other words, $20/hr in 1970 = nominal wage of $20. However, $20/hr in 1970 is a significantly higher real wage than $20/hr in 2018. That is because $20 could purchase a lot more in 1970. That’s why when people talk about wage stagnation, they’re talking in terms of “real wages”. While nominal wages have increased since the 70s, Real wages have not for much of the workforce.
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