I can't believe you'd link to that. They didn't even consider inflation. When factoring inflation and the cost of similar products, the youth of today are either in the same boat or screwed. All depending on how far you take the math. Either way they certainly aren't better off than the boomers.
I recall an old analogy that if the cost of a car with a full tank of gas came down at the same rate as the cost of computer processor capacity starting in the mid 1950's it would now be cheaper to buy a new car than to refill the gas tank.
Of course that never happened. The list in the story is heavy on small manufactured goods and electronics. I've seen watches and calculators on the one-dollar stores! Two years ago my toaster quit. I got a new one from Wal-Mart for one-tenth the cost of a mid 1950's basic toaster.
Materials intensive manufactured goods cost more as do most services. Housing depends on lot of factors that are location specific. A comparable food basket is probably cheaper now but back in the day "seasonal" was seasonal.
If you google "inflation calculator" there are a lot of tools. I do a lot with 1973's where we have an 408.4% inflation versus today. In 1955 it was 742.2% What is interesting is the inflation before the 1973 oil embargo!
http://www.usinflationcalculator.com/
What matters most is "disposable income". This can vary widely.
I have a first generation I-pad 8GB. I can get Wifi everywhere in Minneapolis if I log into my $18 per month 3 meg internet and McDonalds if I am on the road. A nice device, it gave me a few important heads ups. On ebay I got a charger/broadcast to FM car plug in.
I can't believe you'd link to that. They didn't even consider inflation. When factoring inflation and the cost of similar products, the youth of today are either in the same boat or screwed. All depending on how far you take the math. Either way they certainly aren't better off than the boomers.
ReplyDeleteI must have linked the wrong story. Sorry.
ReplyDeleteI checked the link. I had the correct link; I was looking at the wrong column, I guess.
ReplyDeleteI recall an old analogy that if the cost of a car with a full tank of gas came down at the same rate as the cost of computer processor capacity starting in the mid 1950's it would now be cheaper to buy a new car than to refill the gas tank.
ReplyDeleteOf course that never happened. The list in the story is heavy on small manufactured goods and electronics. I've seen watches and calculators on the one-dollar stores! Two years ago my toaster quit. I got a new one from Wal-Mart for one-tenth the cost of a mid 1950's basic toaster.
Materials intensive manufactured goods cost more as do most services. Housing depends on lot of factors that are location specific. A comparable food basket is probably cheaper now but back in the day "seasonal" was seasonal.
If you google "inflation calculator" there are a lot of tools. I do a lot with 1973's where we have an 408.4% inflation versus today. In 1955 it was 742.2% What is interesting is the inflation before the 1973 oil embargo!
http://www.usinflationcalculator.com/
What matters most is "disposable income". This can vary widely.
I have a first generation I-pad 8GB. I can get Wifi everywhere in Minneapolis if I log into my $18 per month 3 meg internet and McDonalds if I am on the road. A nice device, it gave me a few important heads ups. On ebay I got a charger/broadcast to FM car plug in.
I"ve always said the only real huge expense in this country is unplanned medical costs, and/or health insurance.
ReplyDeleteOne can drive with a new car for as little as $89/month in Texas. At least advertised on television.
One can find an apartment for $450 in most places in the country, if need be.
Food (at home) is very, very inexpensive.