that's total nonsense. gresham's law doesn't apply to food
The reason most people think inflation sucks is because modern society would rather collapse than pay workers in line with historical norms.
You probably need to define what you mean by average blue collar worker as there are many ways of looking at this data (and it is often difficult to even find the estimated levels of transfer payments being given). For example, this Fed chart shows CPI adjusted median household income rising from around 57 thousand to around 75 thousand today: https://fred.stlouisfed.org/series/MEHOINUSA672N
So it can both be true that inflation-adjusted wages are rising and it is becoming harder to make ends meet.
A wage that supported a cowboy with two sets of clothes, a house that wouldn’t pass any building codes, a horse instead of a car, and no phone is not going to support a modern worker even if “adjusted” for inflation.
It’s Gresham’s “law”: “bad money drives out good”, but applied to food.
https://en.m.wikipedia.org/wiki/Gresham's_law