Quote: (09-16-2017 08:09 AM)Sonoma Wrote:
There's a lot of problems with how inflation is calculated, and it's showing here.
For one, nearly zero things I own had a remotely comporable product in 1973. Many of the "same" products, such as cars, are infinitely better equipped with much better specs. A 2017 Civic would destroy a 73 Ferrari
A 1973 Ferrari Dino is worth about a quarter million dollars in decent shape. A 2017 Civic in good shape will be worth one tenth that, if you're lucky, in 40 years...
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If you look at cost of new home compared to income, housing costs have risen somewhat, but once you factor in square footage, that rise in cost disappears altogether.
It's definitely not the case in most coastal cities, real estate has outperformed inflation there. It is true though in red state cities like Atlanta or Houston where Case-Shiller flat behavior in real terms holds true.
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Also, there seems to be this assumption that wages should keep rising, and I'm not sure why. Expecting rising average wages by everyone in a population without a corresponding effect on inflation is basically the opposite of every econ class ever
Productivity, that's why. Tools like the internet, computers, tech, new processes have made companies more profitable and productive, wages will usually track that rise.[/quote]
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