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Old 08-15-2011, 06:56 PM
 
Location: Maryland
1,466 posts, read 2,241,433 times
Reputation: 1936
CPI Inflation calculator: www.bls.gov/data/inflation_calculator.htm

Inflation is not the only culprit: $0.40 in 1970 = $2.33 in 2011 dollars: $0.90 in 1970 = $5.24 in 2011. The cost base of many items has increased beyond simple inflation's impact using the CPI measurement.

Hey Mathjak, where in NYC did you get a deal/steal of 4 slices + soda for $10? Last time we were there (Oct '10), I paid way over that (Cloisters area), more like $15!!!

Personal Financial Trivia:
Gas in podunk PA in the mid sixties ran around $0.25/gal. My starting salary fresh out of college with a BS Accounting in 1973 was $11,297, in 2011 dollars thats $57,432, the 2011 current pay for that position (Federal GS-7/Step 5) pays $47,838. My minimum wage job during college (6/70-12/72) was $1.60/hour (1972 in PA), in 2011 dollars thats $8.64/hr; Pennsylvania's 2011 MW = $7.25/hr.

Last edited by Pilgrim21784; 08-15-2011 at 07:31 PM..
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Old 08-16-2011, 03:17 AM
 
29,286 posts, read 25,398,627 times
Reputation: 16889
pretty much anywhere in queens or brooklyn you can get 4 slices and sodas for 10 bucks. manhattan is crazy . oh man we went to a diner up by central park and paid 17 bucks for eggs and homefries.

Last edited by mathjak107; 08-16-2011 at 03:53 AM..
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Old 08-16-2011, 06:04 AM
 
Location: Maryland
1,466 posts, read 2,241,433 times
Reputation: 1936
Okay, thats more like my expectations and experience. I've never been outside Manhattan so don't have any other experience. The Apple is a great place to visit but too rich for my wallet long term.

Wage levels sure have not kept up with inflation. It just reaffirms the wisdom that you don't (mostly) make money working for it, you've gotta get some and make it work for you.

PS - belated Happy Birthday! Keep chugging along and soon you can join the 60s club and be a real grey beard!
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Old 08-17-2011, 05:14 PM
 
Location: The west
1,578 posts, read 1,143,882 times
Reputation: 1500
Quote:
Originally Posted by Pilgrim21784 View Post
CPI Inflation calculator: www.bls.gov/data/inflation_calculator.htm

Inflation is not the only culprit: $0.40 in 1970 = $2.33 in 2011 dollars: $0.90 in 1970 = $5.24 in 2011. The cost base of many items has increased beyond simple inflation's impact using the CPI measurement.

Hey Mathjak, where in NYC did you get a deal/steal of 4 slices + soda for $10? Last time we were there (Oct '10), I paid way over that (Cloisters area), more like $15!!!

Personal Financial Trivia:
Gas in podunk PA in the mid sixties ran around $0.25/gal. My starting salary fresh out of college with a BS Accounting in 1973 was $11,297, in 2011 dollars thats $57,432, the 2011 current pay for that position (Federal GS-7/Step 5) pays $47,838. My minimum wage job during college (6/70-12/72) was $1.60/hour (1972 in PA), in 2011 dollars thats $8.64/hr; Pennsylvania's 2011 MW = $7.25/hr.
Wow. Very interesting. Thanks for posting.

-Cheers.
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Old 08-18-2011, 04:10 AM
 
Location: Los Angeles, Ca
2,828 posts, read 3,281,786 times
Reputation: 2610
It's funny how the FED uses all these ridiculous CPI indicators....i.e. you hear about them stripping those "volatile" food and energy prices, lol. Core CPI.

-The mainstream media never looks at inflation in terms of the minimum wage. I think thats a pretty good barometer of real inflation.

-Also, I know appliances use to last longer (say from 1940 to 1970). They would last forever. You bought one refriderator, one washer, one dryer. now, they're basically junk.

I bet if you looked at a map of the world in 1970, in terms of oil consumption, vs now, the numbers would be shocking. Say, the average gas consumed per person. Entire swaths of the world were at zero.
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Old 08-18-2011, 04:24 AM
 
Location: Nowhere Land.
7,810 posts, read 3,098,899 times
Reputation: 10418
If youíve seen the good times, then you know when itís bad.
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Old 08-18-2011, 05:05 AM
 
Location: Londonderry, NH
33,394 posts, read 28,007,444 times
Reputation: 15343
In 1970 my wife's 65 Beetle cost less than a penny a mile for fuel. 35 mpg on 25 cent gas. My old '58 Volvo did just as well. Both cars lasted over 200k. Our new in '74 SAAB 99 got 24 mpg and lived for 14 years and 240k.

The biggest change has been that we could afford long vacation trips to places like Arizona, Florida and the Outer Banks of Carolina on starting wages. In 1982 I rode a motorcycle from San Francisco to NYC and spent less than $800 including flying to SF. Now I am making nominally 10 times the salary and we can barely afford any trip just on gasoline costs. Adding hotel accommodations puts overnight trips out of reach.

This is the result of financializing our economy and the transfer of wealth to a few financiers at the great expense to the rest of us. We have been cheated and we damn well know it.
.
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Old 08-18-2011, 05:14 AM
 
20,293 posts, read 15,462,370 times
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There are other factors such as supply and demand that affect both salaries and the price of gasoline. You have to take all those factors into consideration, otherwise you're not saying much of anything useful.
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Old 08-18-2011, 06:26 AM
 
Location: Londonderry, NH
33,394 posts, read 28,007,444 times
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True, but the supply and demand of both jobs and petroleum are controlled at the source in order to decrease the availability of the former by automation and increase the demand for the later without increase in supply, the prices paid for workers decreases and the price paid for petroleum increases. This benefits the owners of the jobs and the oil immensely. This is no accident but very effective market manipulation by some very smart people.
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Old 08-18-2011, 08:19 AM
 
Location: Ohio
10,413 posts, read 5,752,160 times
Reputation: 5969
Quote:
Originally Posted by giney12 View Post
gas was 40c a galllon, min wage was $1.60 an hour, you cleared $1.25 an hour. working at the allis chalmers plant, you cleared $5 an hour, could buy 12 gallons of gas. a decent wage today would clear $40 an hour, which would take a gross wage of $65 an hour. Inflation is a killer. If you don't allow for CLEARING at least 5% per year, in your investing, you are being ruined.
Your argument can be categorically dismissed as grotesquely disingenuous.

I notice you refused to choose something more stable for comparison, like rents, but then had you done that, you would have destroyed your own argument.

Quote:
Originally Posted by Pilgrim21784 View Post
Inflation is not the only culprit: $0.40 in 1970 = $2.33 in 2011 dollars: $0.90 in 1970 = $5.24 in 2011. The cost base of many items has increased beyond simple inflation's impact using the CPI measurement.
The Inflation Calculator isn't relevant here. That only calculates Real Inflation. It does not calculate Cost Inflation, and commodities like oil are heavily subjected to Cost Inflation.

In reality, to you would need to look at the number of vehicles in existence; total miles driven, and amount of gasoline produced in 1970 to get an accurate comparison with today, and even then you'd have to factor in world production and consumption.
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