wages increasing faster than inflation means that effective (sometimes called "real") prices fall.
If in year N an item costs $1000 and you earn $10k a year, but in year N+M the item costs $1100 but you earn $12k a year, the real price of the item has gone down.
No, it doesn't mean that at all. Real prices are a function of the ratio between the cost and earnings. If earnings rise faster than cost, real prices fall.
Now, whether or not that's a likely scenario is a separate question, but it is absolutely not impossible and has happened before.
Of course not. That doesn't make what I said false.
Have you ever had anyone say "cars cost so much more now, they were only $800 in 1942" and be taken seriously? (or whatever similar example you want to use)
Inflation has been going on basically constantly for centuries. Nobody is really expecting to buy a coke for a quarter or anything again, but people are expecting the prices to not grow 10% every couple months so that they’ll be able to switch to a job where things will feel affordable again (since jobs offering fair wage increases are basically a thing of the past).
Nobody would complain about $10 bags of chips if they made 4000x that a month.
