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How can middle class not become poorer if inflation alone is making us able to buy less stuff that matters. How can you say my grandpa that was able to afford

by pojzon 5y ago

How can middle class not become poorer if inflation alone is making us able to buy less stuff that matters. How can you say my grandpa that was able to afford a big house and feed 5 children working alone as grandma was taking care pf the house - was not living in better financial condition than me who makes 3 times as much money as he did but I cannot afford half of what he could… The current definition of the middle class is constantly changing based on income only - which makes no sense. It should be calculated towards buying power you have. And buying power over the years for ppl like me and younger only decreases. Thus -> middle class crisis is going to hit the fan like really soon. It already did in China and its going to hit US too.

sershe 5y ago
All the numbers in the above data are adjusted for inflation. Anecdotes are not data. According to this (quick google): https://dqydj.com/historical-home-prices/ https://dqydj.com/historical-home-prices/ inflation adjusted median price increased by about 80-95% since ~1970 (assuming ~25 years per generation for "grandpa"), depending on whether you include the COVID spike. According to this, however: https://247wallst.com/special-report/2016/05/25/the-size-of-a-home-the-year-you-were-born/2/ https://247wallst.com/special-report/2016/05/25/the-size-of-... median house size since 1970 increased by ~75%. That both calls "big house" into question, and puts the increase in price into perspective. Also, inflation adjusted income has increased by ~50% in the same time frame: https://www.pewresearch.org/social-trends/2020/01/09/trends-in-income-and-wealth-inequality/ https://www.pewresearch.org/social-trends/2020/01/09/trends-.... So, housing has become expensive somewhat faster than income (but by far not 3x that you describe), in part because the houses are now much bigger (and not half the size that you imply for the 3x cost). To put it more bluntly than in my previous post (and for reference I did not grow up in the USA), the main difference between your US generation and grandpa's, is that yours is far more entitled, while representing a far smaller slice of world economy. And, if my West Coast experience is any indication, the sub-slices of the generation tend to feel more entitled in inverse proportion to their actual economic contribution...

by pojzon 5y ago

sershe 5y ago

All the numbers in the above data are adjusted for inflation. Anecdotes are not data. According to this (quick google): https://dqydj.com/historical-home-prices/ https://dqydj.com/historical-home-prices/ inflation adjusted median price increased by about 80-95% since ~1970 (assuming ~25 years per generation for "grandpa"), depending on whether you include the COVID spike. According to this, however: https://247wallst.com/special-report/2016/05/25/the-size-of-a-home-the-year-you-were-born/2/ https://247wallst.com/special-report/2016/05/25/the-size-of-... median house size since 1970 increased by ~75%. That both calls "big house" into question, and puts the increase in price into perspective. Also, inflation adjusted income has increased by ~50% in the same time frame: https://www.pewresearch.org/social-trends/2020/01/09/trends-in-income-and-wealth-inequality/ https://www.pewresearch.org/social-trends/2020/01/09/trends-.... So, housing has become expensive somewhat faster than income (but by far not 3x that you describe), in part because the houses are now much bigger (and not half the size that you imply for the 3x cost). To put it more bluntly than in my previous post (and for reference I did not grow up in the USA), the main difference between your US generation and grandpa's, is that yours is far more entitled, while representing a far smaller slice of world economy. And, if my West Coast experience is any indication, the sub-slices of the generation tend to feel more entitled in inverse proportion to their actual economic contribution...