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#1 Jul 20, 2020 4:52 pm

houston
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Question?

Are we being fooled by numbers?
Why is the cost of living going up and up, year by year, yet most salary increases are based on the rate of inflation? Are inflation numbers casted by senior economists really accurate?
Why does a decent vehicle today cost 60% of your annual income today, when 40 years ago it may have cost 10%.
Same with a home that maybe 500% of todays average annual salary?
Groceries, gasoline, food have all increased our daily cost of living.
I earn maybe 10% more than I did 20 years ago, yet it seems like the cost of living has increased by about 80%.
40 years ago just about anybody willing to get up and go to work was able to buy a modest home, raise a family and have a car.
Why has that dream become out of reach for so many today?

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#2 Jul 20, 2020 5:15 pm

Real Distwalker
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Re: Question?

Inflation numbers are calculated on a basked of goods, not all goods.  They are just an estimate.

Not all costs go up.  A television costs less than 10% of what it did in 1970 and is much, much better.  Telecommunications is much, much cheaper.  Travel is much, much cheaper.

Cars aren't necessarily more expensive.  A car depreciates faster and are much more reliable.  If you bought a new car in 1980 you'd be lucky to get eight years out of it.  Today they last 12.  That means that buying a four year old car will get you as much utility as a new car in 1980 and a four year old car today costs close to what a new car cost then.

Beyond that, you buy a lot more now.  Things that people spend a lot of money on now that they spent nothing on in the 1950s...

Internet
Cable TV
Cell phones
Microwaves
Air travel
Air conditioning
Computers
Streaming media
Optional drugs like Viagra
Multiple cars
...and so forth.

Cut out all that and you will live like people lived in the 1950s and get by fine on what you make... just like they did.

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#3 Jul 20, 2020 6:06 pm

houston
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Re: Question?

You know, that's a really good answer. Reduce the expenses and bingo, life is good.
I agree that everyone needs to live within a certain budget, although life as a pioneer isn't so easy these days.
The vehicles should be expected to last for 12 years at a cost $40,000 or more. Not sure how they do, but plenty of people are spending more on vehicles than they do on housing or other necessities.
Are we on a collision course with many people living beyond their means and the debt factor? Time will tell, sooner than later I think.

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#4 Jul 20, 2020 6:32 pm

Real Distwalker
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Re: Question?

Your average household sure seems to have a whole lot more shit to pay for than they did back when I was a kid in the 1970s.

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#5 Jul 20, 2020 6:53 pm

houston
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Re: Question?

They sure do.
Does the average increase of income reflect that?
Certainly not.

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#6 Jul 20, 2020 8:03 pm

Real Distwalker
Active

Re: Question?

No but if people only spent money on the stuff they spent money on in the 1970s, they would have the same standard of living as people in the 1970s and some surplus income to boot.

They would feel poorer than people did in the 1970s, however, when they looked around and saw all the new crap others were spending money on.

Last edited by Real Distwalker (Jul 20, 2020 8:03 pm)

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#7 Jul 21, 2020 11:58 am

Slice
Active

Re: Question?

houston wrote:

Are we being fooled by numbers?
Why is the cost of living going up and up, year by year, yet most salary increases are based on the rate of inflation? Are inflation numbers casted by senior economists really accurate?
Why does a decent vehicle today cost 60% of your annual income today, when 40 years ago it may have cost 10%.
Same with a home that maybe 500% of todays average annual salary?
Groceries, gasoline, food have all increased our daily cost of living.
I earn maybe 10% more than I did 20 years ago, yet it seems like the cost of living has increased by about 80%.
40 years ago just about anybody willing to get up and go to work was able to buy a modest home, raise a family and have a car.
Why has that dream become out of reach for so many today?

Leh me give you an example today as compared with 40 years ago, My entertainment bill is over $600 ah month. Cable, Internet and wireless communications.  Most of that cost was not around 40 years ago.

Maybe the cars today is much, much safer than 20 years ago.  Maybe you also pay for safety.

The way ah look at it, you only live once. You save the money, your children go spend it anyway, so enjoy your life if you can.  Forget the price.

Oh and ah forget another ec$200 for cable and internet in Grenada.

Last edited by Slice (Jul 21, 2020 4:17 pm)

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