5 ms·
People are poorer today on an inflation adjusted basis
by Kareem71 3y ago
People are poorer today on an inflation adjusted basis
- selectodude 3y agoNo, they really aren’t. https://fred.stlouisfed.org/series/MEHOINUSA672N https://fred.stlouisfed.org/series/MEHOINUSA672N
- Xeoncross 3y agoI know the FED says we're not poorer, but their adjustment for inflation is just a marketing stunt. If you look at the historical ratio of income to the price of housing you'll see we're making less compared to the cost of things every year. Pull up a chart of "FRED:ASPUS/FRED:MEHOINUSA646N" on https://www.tradingview.com https://www.tradingview.com edit: took a screenshot to save the trouble https://imgur.com/a/U5ml4Iq https://imgur.com/a/U5ml4Iq
- selectodude 3y agoIf you look at the historical ratio of income to the price of computers we're literally orders of magnitude wealthier. You can't just pick one data point and blast off.
- JoeJonathan 3y agoI mean, it’s not entirely implausible that housing is a better index of cost of living than computers.
- Xeoncross 3y agoGenerally, regulated industries provide a better measurement (housing, healthcare, food, etc..) than unregulated ones (TV's, computers, etc..)
- mrep 3y agoYou're ignoring interest rates which allow the overall price to go up while keeping the monthly payment the same and the fact that houses have gotten a lot bigger over the decades [0]. [0]: https://www.supermoney.com/inflation-adjusted-home-prices/ https://www.supermoney.com/inflation-adjusted-home-prices/
- orangecat 3y agoIf you look at the historical ratio of income to the price of housing This has a lot more to do with governments making it illegal to build housing than the overall strength of the economy.