Are you paying more than your parents? or less?

[rightwinger]

Are you paying more than your parents? - Oct. 29, 2013

It's true that sticker prices usually rise. But in relative terms, you could actually be paying a lot less than your parents did a generation ago.

The good

The price of manufactured goods is way down. Televisions are now 98% cheaper than they were in 1983, according to the Consumer Price Index.

The index accounts for advances in technology. That 98% drop means a TV that costs $100 in 1983 -- with its dial controls and antenna -- would be worth about $2 today.

Toys are another example. The price of toys has fallen 78% compared to the overall level of inflation in the last 30 years. And clothing has fallen by 46%.

"We've experienced the 'miracle of manufacturing' over the last 50-60 years," said Mark Perry, an economist at the University of Michigan Flint School of Business. "Anything that is manufactured has become cheaper and cheaper over time."

The bad

The cost of college tuition has surged 227% over the rate of inflation since 1983, according to BLS. A hospital stay is up 197%, while prescription drugs are 89% more expensive. And housing costs are more expensive too -- up 14% from 1983.

What's happened is the demand for these things has grown substantially as people got richer, said Douglas Irwin, an economics professor at Dartmouth College. But advances in productivity -- the ability to churn out ever greater numbers for a cheaper price -- hasn't kept up.

 

[expat_panama]

...cost of college tuition has surged 227% over the rate of inflation since 1983, according to BLS. A hospital stay is up 197%, while prescription drugs are 89% more expensive. And housing costs are more expensive too -- up 14% from 1983.

What's happened is the demand for these things has grown substantially as people got richer, said Douglas Irwin, an economics professor at Dartmouth College. But advances in productivity -- the ability to churn out ever greater numbers for a cheaper price -- hasn't kept up.

Funny ol' CNBC, clueless as always. Never stopping to think that the market place actually works, and when prices go up they go up for a reason.

People in increasing numbers are willing to pay more for education because they know full well it's worth every penny in terms of ever increasing advantages in earning power. Same with medical care. Anyone want to see a docotro who hasn't touched an AMA jornal in three decades? Compared to those of 1983 today's homes are not only bigger but come equipped with built-ins, up-dated codes, and far more tech friendly.

OK, I shouldn't pick on CNBC just 'cause they're lost when it comes to productivity in services. Everyone is; it's changing too fast. We used to measure say, shipping production in terms like ton-miles. What happens now is that some geek writes an app to reroute deliveries in half the miles. It may look like production ton-miles are down but customers get their stuff early and the shipper's cost plummet.

 

[jwoodie]

A difficult question to answer. There are many more taxes now, as well as two earner households. On the other hand, houses are bigger and cars are safer (gas mileage/prices may be a wash).

I believe that the increasing cost of higher education is driven primarily by the widespread availability of of student loans and grants.

 

[jasonnfree]

Are you paying more than your parents? - Oct. 29, 2013

It's true that sticker prices usually rise. But in relative terms, you could actually be paying a lot less than your parents did a generation ago.

The good

The price of manufactured goods is way down. Televisions are now 98% cheaper than they were in 1983, according to the Consumer Price Index.

The index accounts for advances in technology. That 98% drop means a TV that costs $100 in 1983 -- with its dial controls and antenna -- would be worth about $2 today.

Toys are another example. The price of toys has fallen 78% compared to the overall level of inflation in the last 30 years. And clothing has fallen by 46%.

"We've experienced the 'miracle of manufacturing' over the last 50-60 years," said Mark Perry, an economist at the University of Michigan Flint School of Business. "Anything that is manufactured has become cheaper and cheaper over time."

The bad

The cost of college tuition has surged 227% over the rate of inflation since 1983, according to BLS. A hospital stay is up 197%, while prescription drugs are 89% more expensive. And housing costs are more expensive too -- up 14% from 1983.

What's happened is the demand for these things has grown substantially as people got richer, said Douglas Irwin, an economics professor at Dartmouth College. But advances in productivity -- the ability to churn out ever greater numbers for a cheaper price -- hasn't kept up.

Necessities in the 50's were cheaper I believe. I remember affordable house calls in the early 1950's by a doctor though I don't remember the price, my dad paid it and he was just a tool and die maker. People want more today. Basic houses back then with one bathroom, small electric box with a couple of circuits and maybe a single car garage. As late as 1959, only one mother in an entire working class neigborhood worked. Had a corner grocery store in every neighborhood and a main street within walking distance in most places so a second car wasn't necessary. Many unnecessary items way more expensive. I remember a color RCA t.v. costing hundreds then -6 or seven hundred dollars in early 60's vs wages then, mucho money.

 

[rightwinger]

I think a basic standard of living was more attainable and attainable on one salary. A house, one car, healthcare, college for your kids was achievable on a single working class salary

Luxuries like color TV, air conditioning, swimming pools, multiple phones, clothes dryers were too expensive.

 

[SteadyMercury]

The necessities have been redefined, so it isn't easy to compare them.

If we bought a smaller house with one bedroom, had one car, got rid of the monthly fees for cable TV, internet, smart phone, ate out less frequently, fewer appliances, didn't fly across country on vacation, etc. we might find living on one middle class salary is affordable.

 

[Againsheila]

Are you paying more than your parents? - Oct. 29, 2013

It's true that sticker prices usually rise. But in relative terms, you could actually be paying a lot less than your parents did a generation ago.

The good

The price of manufactured goods is way down. Televisions are now 98% cheaper than they were in 1983, according to the Consumer Price Index.

The index accounts for advances in technology. That 98% drop means a TV that costs $100 in 1983 -- with its dial controls and antenna -- would be worth about $2 today.

Toys are another example. The price of toys has fallen 78% compared to the overall level of inflation in the last 30 years. And clothing has fallen by 46%.

"We've experienced the 'miracle of manufacturing' over the last 50-60 years," said Mark Perry, an economist at the University of Michigan Flint School of Business. "Anything that is manufactured has become cheaper and cheaper over time."

The bad

The cost of college tuition has surged 227% over the rate of inflation since 1983, according to BLS. A hospital stay is up 197%, while prescription drugs are 89% more expensive. And housing costs are more expensive too -- up 14% from 1983.

What's happened is the demand for these things has grown substantially as people got richer, said Douglas Irwin, an economics professor at Dartmouth College. But advances in productivity -- the ability to churn out ever greater numbers for a cheaper price -- hasn't kept up.

The television my parents purchased was a piece of furniture and if it broke, you called the repairman. It was cheaper to fix than to buy a new one. Toys lasted forever, they were passed down to your younger brothers and sisters or given to the neighbors kids, or the goodwill. They didn't break less than a week after you bought them, and you didn't have to be careful with them for their sake, but for your sake.

 

[boedicca]

I'm paying more than half of my income in taxes...far more than my parents did.

Savings in free market goods and services are being gobbled up by the government taking more.

 

[Againsheila]

I think a basic standard of living was more attainable and attainable on one salary. A house, one car, healthcare, college for your kids was achievable on a single working class salary

Luxuries like color TV, air conditioning, swimming pools, multiple phones, clothes dryers were too expensive.

We were poor but somehow we were able to afford a house, a couple of phones and washer and dryer (though they didn't match for years and years) and even two widow air conditioning units, all on my dad's salary in the military.

 

[rightwinger]

Are you paying more than your parents? - Oct. 29, 2013

It's true that sticker prices usually rise. But in relative terms, you could actually be paying a lot less than your parents did a generation ago.

The good

The price of manufactured goods is way down. Televisions are now 98% cheaper than they were in 1983, according to the Consumer Price Index.

The index accounts for advances in technology. That 98% drop means a TV that costs $100 in 1983 -- with its dial controls and antenna -- would be worth about $2 today.

Toys are another example. The price of toys has fallen 78% compared to the overall level of inflation in the last 30 years. And clothing has fallen by 46%.

"We've experienced the 'miracle of manufacturing' over the last 50-60 years," said Mark Perry, an economist at the University of Michigan Flint School of Business. "Anything that is manufactured has become cheaper and cheaper over time."

The bad

The cost of college tuition has surged 227% over the rate of inflation since 1983, according to BLS. A hospital stay is up 197%, while prescription drugs are 89% more expensive. And housing costs are more expensive too -- up 14% from 1983.

What's happened is the demand for these things has grown substantially as people got richer, said Douglas Irwin, an economics professor at Dartmouth College. But advances in productivity -- the ability to churn out ever greater numbers for a cheaper price -- hasn't kept up.

The television my parents purchased was a piece of furniture and if it broke, you called the repairman. It was cheaper to fix than to buy a new one. Toys lasted forever, they were passed down to your younger brothers and sisters or given to the neighbors kids, or the goodwill. They didn't break less than a week after you bought them, and you didn't have to be careful with them for their sake, but for your sake.

We had fewer toys than kids today. You played outside and improvised your own toys. A bike lasted your childhood and was handed down to younger brothers and sisters. We also didn't have our own rooms because most families had 4-6 kids