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Here's my take on the reality versus the perception.
I brought a good used car back in 2008. It was about twenty years old and it cost me $3,500.00 It was a great deal.
A quick look at the car ads today shows me that a twenty year old car now costs about $7,000.00
There's a charity dinner I used to attend. The first time I got tickets they were $125.00 and the event was held in a Manhattan luxury hotel. Same event this year is $225.00 and it's being held out in Queens.
$1,000.00 a month for rent used to be considered extravagant; now it's the norm.
Even if people have enough to get by, they no longer feel like they are doing well. Poverty is a mind set. Dick Gregory had the line that his parents would tell him that they weren't poor, they were just broke. If you think of yourself as 'broke' it means you expect things to get better. If you're poor, you're going to stay poor.
People are pretty simple - they pay more attention to prices than income. All they remember is that "thing used to cost x now it costs y" and conclude that things are worse of. Everybody always thinks "costs are it of control". This is a standing headline going back many decades.
otoh, prices have been out of control for decades.
When Reagan took office, 'middle class' was still one good job supporting a family of four. In those days, $1 million was a vast fortune. By the time Bush Sr. left office "middle class" was two jobs to support the family and $1 million was what a rich guy paid for a party.
You're making it too complicated. People just see "things cost more now than when I was a child" and thinks that's bad. They don't understand inflation. They don't understand that that's the economy working as designed.
No, you're oversimplifieing it. Everyone sees things getting more expensive yet my paycheque has not budged. We understand inflation. We don't understand why inflation is simply outpacing raises. I've personally lost significant spending power in the last 5 years. In the 90s my mother could buy the same groceries I pay $100 for and only spend $25. She made $14 an hour. I do the same thing she did at that age yet I make $17 an hour. Her mortgage for a 1200sqf house in a half acre was $850. My Rent for a 450sqf apartment with no backdoor is $950. The math does not add up. Wages are not keeping up with inflation.
We agree completely.
People are working harder for less money.
Oh, sorry for coming at you like that then. Cheers.
Edit: noticed your name. I thought you were the person I responded to haha.
The format here is funny like that.
Enjoy the night, and eat lots of candy!
People understand.
When I was in high school I could afford concert tickets. I'm an adult and concert tickets are prohibitive.
There's day to day inflation, and a super inflation in luxury goods. One of the biproducts of the billionaire class growing is that minor luxuries are being taken away from regular consumers. Normal folks used to go to the Super Bowl, now you need a private plane to afford tickets.
I look at income. Its insane what I have to make to not be losing money each month.
1k a month rent. that seems incredibly cheap to me.
You can occasionally find studios here in Seattle for that price. If you are willing to roommate up, you can easily find 2 bedrooms for under $2k/month. Finding a house to buy is another story though...
Im surprised because maybe if you roommate you can here but efficiencty even no way. Maybe in the more dangerous areas. I thought Seattle was more expensive.
A while back, we were watching a Marilyn Monroe movie at the local watering hole. "How To Marry A Millionaire."
At one point, Marilyn and her two buddies walk into a giant duplex apartment at a swanky Manhattan address.
Marilyn looks at the luxurious digs, the fantastic view, and the fawning doorman.
"Wow! This place must rent for a thousand dollars a month!"
The crowd demanded that line be replayed three times before the barkeep restored order.
I went to a concert pre COVID and it was $50 a seat. Same band now is playing and it's $300 a seat, same arena. I paid $80 for great tickets for WrestleMania like 15 years ago. Tickets to a live WrestleMania will run you a grand easily now.
My dad asked me recently how much I made per paycheck. I told him I take home $1100 every two weeks, assuming I didn't miss any work because I don't get PTO.
Dad: "You make $2200 a month?!?"
Me: Yep, I told you, I'm broke.
Dad: "You're not broke, you're poor."
Me: No, I'm both.