Is that true? If I google āaverage salary in 1980ā(that should be more or less the right time frame for most of our parents) and āaverage cost of a home in 1980,ā I get ā$12,513.46ā and ā47,200ā respectively.
I actually donāt really have an opinion on the issue of ātoo muchā vs ātoo littleā choice. TBH. I think both sides are valid.
The āchoice overloadā perspective is just one that I donāt really hear very often. THe guyās arguments seemed valid and we did read a couple of studies (one of 401k enrollment, health insurance choice and jam).
I could be completely misinterpreting the argument so I linked someone who has a handle on what his views are
They didnātā¦ Child labour predates both. Capitalism and the industrial revolution resulted in huge job creation, in particular unskilled job creation. Unskilled job creation in the absence of regulation otherwise will also result in an increase in jobs done by children in families who otherwise canāt support them or are struggling.
I actually went back in time even further, which admittedly, was inappropriate for the generations we speak of here. If i do look back further Iād still be wrong in saying one yearās salary Iād still be wrong. However cost of homes was far lower compared to earnings. I know old people who bought homes in Levittown, LI, for less than 10k.
This is unarguably true, however those periods also correspond with interest rates that were higher by orders of magnitude, and therefore available mortgages much smaller. The increase in prices corresponds pretty perfectly with the amount people are able to borrow. Which is to say nothing more than the amount people are willing to pay for a house is effectively as much as they can afford.
In both cases if you look at the deposit you need, or look at the cost of the mortgage, the figures arenāt very different.
Iāve heard it from avowed socialists and, well, I get the argument but I think itās an incomplete argument when you ask the obligatory ācompared to whatā or āwhatās the alternativeāā¦
Iāve had this discussion with a few separate family members (a cousin and my brother-in-law) and when I ask them to clarify their position for me by asking some iteration of those two questions, they resort to circular logic or some non-sequitor to avoid exposing they havenāt thought that deeply about the subject.
I donāt hold it against my cousin - heās a genuinely nice guy - my brother in law is a fucking idiot who is a walking example of the Dunning Kruger effect ā¦ fuck that guy.
According to one of my professors (in jest): āgrad students are left of marxā
thatās what I was afraid of falling prey to by voicing my (uneducated) opinion. Iām not convinced thereās choice overload, but Iām not entirely convinced we need more either
Voicing your opinion (with an open mind) is the best way to refine it. Test it in the marketplace of ideas. Good ideas stand up to criticism, bad ones die (or hide behind censorship).
In the 1950s, the size of the typical new home increased to 950 square feet , and "by the 60ās 1,100 square feet was typical, and by the 70ās, 1,350 . Beginning with the recession in 2000, the average new house size stabilized to 2,320 (square feet)
Canāt remember where you live. Are you talking about the 4,000 square foot place, or the 5 room place? Both can be million dollar places, depending on location, Iām sure.
It appears that the numbers are around 65K and 340K now. So now we have an average house price that is around 5.2X average salary. In 1980 that ratio was 3.8. So it is worse, but not terribly so.
I think the feelings of things being so much harder are a mix of a few things actually being harder: homes cost more, education costs a lot more compared to wages. But IMO the biggest thing is lifestyle inflation. Some of this is due to us creating a consumer society (it is easy to get debt to buy things).
I make okay money (significantly more household income than my area, Twin Cities, MN), but live in a 1300 sq ft house that I owe ~90k on (bought at 138K), my wife and I drive $5k cars. I look around my neighborhood, where on average people make less than I do, and I am not surprised people are living pay check to pay check. Their garbage / recycling are full each week with Amazon boxes, their driveways have financed SUVs, their house in the same neighborhood as me was 300-350K (I have perhaps the cheapest house in my area). I recently upgraded my 4 year old smart phone which was sub $200. My new one was $265 (5g yay). My less fortunate friends get flagship phones every year.
I am at the point that for most people that buy that new luxury car, or phone, or more house than they need, that I donāt feel envious, I pity them.