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Well isn't it normal? Food has become cheaper since these days. Stuff has become massively, incomparably cheaper. Travel has become cheaper. And Americans had e
by anovikov 8y ago
Well isn't it normal? Food has become cheaper since these days. Stuff has become massively, incomparably cheaper. Travel has become cheaper. And Americans had enough of all these in 1950: it was a rich country already, very few went hungry or unable to buy clothes or household stuff, so as prices fell, possibility of increase of demand were limited, these markets, except travel, were already saturated.
So a lot of money released by these things getting cheaper had to be spent somewhere, and eventually it was spent on things which aren't so prone to technology-driven deflation, mainly real estate.
- conanbatt 8y agoThis would make sense if the housing were of higher quality than it used to be. I think the same house dated 50 years ago might be worth more of a median price today, even though its the same but older house.
- anovikov 8y agoHouse built 50 years ago is firstly, about half as big as today. Personal living space more than tripled in 100 years and more than doubled in 50 years.
- conanbatt 8y agoBut what is the price change of that same house? If the house of old is worth more today, its higher value for the same unit of space (and also stock decay). Are old houses cheaper or more expensive today, taking into account house depreciation?