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phantom power

(25,966 posts) Mon Feb 17, 2014, 03:02 PM Feb 2014

Median household income of $51K == $28K in 1990, $17K in 1980, $8K in 1970

Just an observation, using this inflation calculator:
http://www.westegg.com/inflation/

The reason I started thinking about it, is this post about how older people (and I'm now old enough to experience this) tend to think of money being worth more than it is. When I started working (1992), a salary of $51K would be like a salary of $82K today.

This isn't in response to anything in particular, but I continue to be amazed at how oblivious many olds (defined as anyone who is older than me, of course) are to the fact that The Kids Today have it really freaking hard. You know, the "I worked my way through college why can't you" crowd.

Public higher education used to be cheap. It isn't anymore. This means people who supposedly do the right thing and get that education are 20 grand in debt (or more, of course) at age 22, at which point they can go work for free for awhile to get "exposure" to hopefully land a job paying $38K ($13,500 in 1980 money) and somehow pay off their student debt, save for a downpayment, get hitched and have kids, and buy a house.

The math doesn't add up. I increasingly do think nominal illusion is part of it, as, say, $50,000 sounds like A LOT OF MONEY for a starting job for the older generation, but in 2014 it isn't that much money.

http://www.eschatonblog.com/2014/02/the-wage-is-too-damn-low.html

6 replies

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Highlight:

Median household income of $51K == $28K in 1990, $17K in 1980, $8K in 1970 (Original Post) phantom power Feb 2014 OP

$50 K is median household income in the US. El_Johns Feb 2014 #1

And this whole time I thought I was doing pretty well.... rgbecker Feb 2014 #2

I automatcally adjust for inflation Kelvin Mace Feb 2014 #3

50k today does not offer the life of 20k in the 80s. n/t PowerToThePeople Feb 2014 #4

That's about $10,000 raise in ten years...or $1,000 per year. Auntie Bush Feb 2014 #5

Tuition at my university in 1968 frazzled Feb 2014 #6

El_Johns

(1,805 posts)

1. $50 K is median household income in the US.

Reply to phantom power (Original post)

Mon Feb 17, 2014, 03:16 PM

Feb 2014

rgbecker

(4,834 posts)

2. And this whole time I thought I was doing pretty well....

Reply to phantom power (Original post)

Mon Feb 17, 2014, 03:21 PM

Feb 2014

Started off at $2.70 driving truck in 1970 and jumped to $5.00 with my first college degree job in an office...then $5.00 fixing cars in 1977. Then $15.00 plumbing in 1989 and $35.00 carpentry in 1991-2004 and then $50.00 until now retired.

Turns out I basically only doubled my income over the 40 years of work.

Hey, but it was all fun the whole time.

Kelvin Mace

(17,469 posts)

3. I automatcally adjust for inflation

Reply to phantom power (Original post)

Mon Feb 17, 2014, 03:26 PM

Feb 2014

anytime I am discussing dollar values for goods/services more than 10 years in the past.

Rough rule of thumb to get the equivalent to today's value.

10 years in past - Multiply by 1.25
20 Years ago - Multiply by 1.50
30 years ago - Multiply by 2.00
40 years ago - Multiply by 5.00
50 years ago - Multiply by 7.00

Be aware that SOME goods did not keep up with inflation, and some exceeded it. Food, clothes and technology/appliances got cheaper; housing, medicine/medical care, cars got more expensive.

Wages have NOT kept up with inflation.

PowerToThePeople

(9,610 posts)

4. 50k today does not offer the life of 20k in the 80s. n/t

Reply to phantom power (Original post)

Mon Feb 17, 2014, 03:30 PM

Feb 2014

Auntie Bush

(17,528 posts)

5. That's about $10,000 raise in ten years...or $1,000 per year.

Reply to phantom power (Original post)

Mon Feb 17, 2014, 03:40 PM

Feb 2014

frazzled

(18,402 posts)

6. Tuition at my university in 1968

Reply to phantom power (Original post)

Mon Feb 17, 2014, 04:24 PM

Feb 2014

was $2,100 (a rise from $1,600 in 1962-63), and by 1970-71 rose to $2,450. That would have been the equivalent of 30% of the annual median household income. http://bit.ly/1f6DIX0

Today, the tuition at that same university is $45,138. That's 88.5% of the annual median household income. (I'm not even counting room and board, btw). So while in 1968-71, when I was in college, the cost was steep (I had a full tuition scholarship, but living costs still made it expensive). Today it's prohibitive for the middle class.

Back in 1970, there were not so many things to own or buy, either: no cell phone bills, no cable television bills (the only television was free), no computers or software to purchase. So the $8,000--while just about identical to the $51,000 today--does not afford the same status in life. At least that is how it seems. I could be wrong.

Here's a good chart of median household incomes from 1950-1990: it was pretty much flat across those 40 years. It still is. We need a raise.

http://www.stanford.edu/class/polisci120a/immigration/Median%20Household%20Income.pdf

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