It's not the amount its what it can buy.
It's both the amount and what it can buy, and you should be lecturing your students that way.
"Growing up in the 60s the min. wage was $1.60. Gas was .23 per gallon etc. I have low six figure income now. I drive a 1999 van. The money is worthless."
So in the 60's, you could afford 6.95 gallons for every hour you worked.
Now you make at least $100,000, which is equal to $50/hour and at today's price of $3.50/gallon, you can afford 14 gallons for every hour you worked.
You're making a lot more gallons per hour than you were in the 60's, so a low level of inflation over 50 years has not stopped economic progress.
posted on 03/04/2011 12:13:42 PM PST
I think you missed my point. Look at prices from 1900 to 1940. Very slight increases in prices. You have a point on amounts but lets look at real wages. I don't clear $50.00 per hour. There is the slight bite from taxes, healthcare, insurance etc. Real wage is closer to $28.00 to $30.00 per hour. The 7 gallons of gas I could purchase in the 60’s is about 9 now. Not much better in 50 years. We have not progressed by this measure. Net vs. gross income.
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