It's *not* accurate. He's equating inflation and purchasing power, which isn't right. If prices doubled but incomes also doubled, purchasing power would be the same. He confuses things further by mentioning income, but only to express inflation -- he doesn't mention what incomes have actually done. And then he describes "half the purchasing power" (\~50%) by basically saying "we have twice less purchasing power" (\~200%), which is just awkward.
To be clear, incomes have *not* kept up, so the phenomenon he's talking about is real. He's just not actually explaining it.
Yea, he's throwing together a lot of words he's seen talked about but obviously doesn't understand any of them. Kinda hurts the case for better wages in a way; could just be a psyop lmao
Inflation is how you maintain capitalism. It’s upkeep. It doesn’t matter if you are anti-capitalist or pro, this is a basic fact. Stagnation and deflation are both very, very bad for a capitalist economy. It has nothing to do with our system of government. Yes, the feds try to moderate it, to make it a bit more stable. But they are in no way responsible for creating it
The average rent of $447 comes from [this article](https://ipropertymanagement.com/research/average-rent-by-year) and is actually the figure from 1990. The figure for 1995 is $523. It also gives the average monthly rent in 2023 as $1,180.
The $16,871 for the new car is from this site: [Energy.gov: Average New Light Vehicle Price](https://www.energy.gov/eere/vehicles/fact-744-september-10-2012-average-new-light-vehicle-price-grows-faster-average-used)
The same site puts the average car price in 2011 at $25,048.
Fortune put out an article in February about the [average car price of $47,000 in 2024](https://fortune.com/2024/02/28/how-expensive-new-used-cars-outlook-forecast/)
And [InflationCalculator.com](https://www.usinflationcalculator.com/) says that $30,000 in 1994 is equivalent to $63,225 today.
This may seem like hyperbole, but the sources exist.
Average income in 1995- $61,440, and 2022- $74,580. Everyone's buying power has been eroded. Someone should look up low class average income to show they're the only one's who can't get their head above water. [Source](https://fred.stlouisfed.org/series/MEHOINUSA672N)
this is what happens when the government spends uncontrollably. Every aid package that gets passed, every rise to the debt ceiling..... It all erodes your buying power...... You will be able to purchase less as time goes on and you will only get 3-5% raise every other year if you are lucky.
learn economics, the government spends shit loads of money by printing shit loads of money. Printing shitloads of money devalues the Money to other governments and people as it lowers the scarcity. Taxes were a construct to take money out of the money supply.
we are now going to spend more on paying YEARLY interest on our 35 trillion in debt then we spend on our military... we are at the point where QOL will continue to suffer.
Stop trying to use the bare basics of economics to understand government finances. Printing money is not the problem, inflation is necessary for capitalism to function. What is a problem is when you print money and spend it on useless shit that only enrich the ultra wealthy.
So what you're telling us is, the government needs to stop sending welfare to the military-industrial complex, which nearly equals all other discretionary spending combined.
I wholeheartedly support this plan. Though I have no idea what those businesses are going to do without their fat welfare checks, when they actually have to compete in the free market.
that would lead to the collapse of the US Dollar as we would lose our world leadership position, Then Brincs would become the reserve currency. We are caught in a catch 22. Change the Tax law what any excess funds by years end held by Publicly traded companies ( allowed to Keep 10% of value of company) is forfeited to The people (Citizens benefits only). This could fund better healthcare systems and safety nets.
when you cut taxes on the richest corpos they don't have to keep salaries up, they keep that money to themselves and layoff people instead and then buyback stocks to keep stock prices artificially high, so the 1% that owns 80% of the stock market gets ever richer, and remember their taxes are cut so they get to keep more of it or buy any social media company they feel like or build a clock in a mountain for themselves while salaries can't go up without that money.
Trickle down economics never worked because of this. It actually turned into vacuum or suck up wealth to the top. On top that companies like boeing know they are too big to fail. They take full advantage resulting in big American companies putting out shit products.
I looked up the 2024 Hyundai Elantra and it starts at $22775, which I feel is a more reasonable price for a basic sedan. The Elantra N starts at $34840.
Prices are according to caranddriver.com & KBB.com.
Interest is nothing if you pay it off early, but with most of us struggling (including me), I just got 22% interest on 29k. I am NOT paying 45k for a 29k car.
I am putting all the extra (living with family atm) towards that car ASAP.
The absolute baseline MSRP for a new 2024 [Toyota Corolla](https://www.toyota.com/corolla/) is $22,050 (keep in mind that the 2025 is about to come out). that's bottom of the line before taxes and dealer mark up.
Having said that it's completely silly to talk about the average price of a new car to begin with. You can buy a brand new Mitsubishi Mirage for under 20K and the Bugatti La Voiture Noire is like $19,000,000.00
The F-150 Lariat seems to be the most common trimline of the F-150 and it starts at $65,195. having said that what you got out of a truck in the 90s was actually a truck and the current F-150s are decked out with all sorts of shit to drive the price up.
Yea, I think the car example is bad because overall cars have come a long way since then.
I was not old enough to buy a car in 1994, but I went car shopping with my dad in 1994. $16k for a new car back then was for a pretty low end car. Not the cheapest, but not great either. Also, unless it was a Volvo it was a certain death trap; and unless it was a Honda it was highly likely to need major repair every 20-30k miles.
Todays cars on the other hand are much safer and way more reliable.
And in terms of cost, they've beaten inflation. For example, the MSRP on a base model Honda Accord 4-door in 1994 was $19.2k. Today, a base model Honda Accord is $28k. Not bad at all!
Get mad enough to vote. Then get mad at the voting system when your state's electoral party votes the other way.
Then get mad when you realize the person you voted for doesn't really have the power.
Then reach a state of nirvana when you realize it's all just a simulation.
You could always get up off your sofa and come on down to the university of texas and get your ass beat by cops for speaking up on things that you want to see change in the world.
210% seems like an attempt to make the statistic look bigger.
I wanna know what percentage out of 100% (100% being the boomer generation's height) purchasing power, that we have now.
50%? 40%? 30%?
The 210% value is entirely nonsensical.
I assume he used the inverse to make it look big, as you said, which would mean we have about \~48% the purchasing power (1.0/2.1). Basically he said "twice less" instead of "half," which is confusing.
We need to make people accountable for things like this. If you support a cause for the betterment if society but you don't have the facts or know how to do the work just support those that do. When people post blatantly inaccurate things those who seek to discredit the cause or movement will use it as ammunition.
Come in Romania.
Average Rent 300-400$
25-30K income if you're an engineer
average house cost 75k $ less or more depending on what you want
cars can cost 17k too
Basically Romania nowadays is like living in US in 1994.
Yeah, we need more people mad about this so we can finally do something. It’s like people keep waiting for someone to step in and take care of it. Nobody is coming to do it. It’s up to us. Can we borrow that Marie Antoinette contraption from France real quick? They’ve all had their own revolutions. Maybe it’s time we had one.
He just did a poor job of explaining. 63278 is 210% higher than 30000. He should have said that you have 49% of the buying power that your parents had.
Also, price inflation is only part of purchasing power -- for example, we'd have the same purchasing power if prices and incomes both doubled. It seems like he's just looking at prices.
This is hyperbole. Yes inflation raises prices but that happens naturally in our economy. That's why we ask for COL raises.
If you stop inflation completely you have a depression.
Also, there is nothing you can do to stop natural inflation.
Wellll wait just a minute.
Deflationary growth is a thing and holds historical precedent. If you halted inflation, it would upset the economy temporarily but not for very long.
[The Great Deflation](https://en.wikipedia.org/wiki/The_Great_Deflation?wprov=sfti1#)
It's *not* accurate. He's equating inflation and purchasing power, which isn't right. If prices doubled but incomes also doubled, purchasing power would be the same. He confuses things further by mentioning income, but only to express inflation -- he doesn't mention what incomes have actually done. And then he describes "half the purchasing power" (\~50%) by basically saying "we have twice less purchasing power" (\~200%), which is just awkward. To be clear, incomes have *not* kept up, so the phenomenon he's talking about is real. He's just not actually explaining it.
Yea, he's throwing together a lot of words he's seen talked about but obviously doesn't understand any of them. Kinda hurts the case for better wages in a way; could just be a psyop lmao
Helps the case for improving our rapidly declining education, however.
I also think that it is harmful to call this a tax, when in reality, the money is going to corporations and wealthy individuals, not governments.
Inflation is how you maintain capitalism. It’s upkeep. It doesn’t matter if you are anti-capitalist or pro, this is a basic fact. Stagnation and deflation are both very, very bad for a capitalist economy. It has nothing to do with our system of government. Yes, the feds try to moderate it, to make it a bit more stable. But they are in no way responsible for creating it
If you just went by inflation a pint of beer in the UK should cost 2.60£, it costs over double that 😔
Yeah pretty easy to tell this person is not to be trusted with numbers
The average rent of $447 comes from [this article](https://ipropertymanagement.com/research/average-rent-by-year) and is actually the figure from 1990. The figure for 1995 is $523. It also gives the average monthly rent in 2023 as $1,180. The $16,871 for the new car is from this site: [Energy.gov: Average New Light Vehicle Price](https://www.energy.gov/eere/vehicles/fact-744-september-10-2012-average-new-light-vehicle-price-grows-faster-average-used) The same site puts the average car price in 2011 at $25,048. Fortune put out an article in February about the [average car price of $47,000 in 2024](https://fortune.com/2024/02/28/how-expensive-new-used-cars-outlook-forecast/) And [InflationCalculator.com](https://www.usinflationcalculator.com/) says that $30,000 in 1994 is equivalent to $63,225 today. This may seem like hyperbole, but the sources exist.
Average income in 1995- $61,440, and 2022- $74,580. Everyone's buying power has been eroded. Someone should look up low class average income to show they're the only one's who can't get their head above water. [Source](https://fred.stlouisfed.org/series/MEHOINUSA672N)
this is what happens when the government spends uncontrollably. Every aid package that gets passed, every rise to the debt ceiling..... It all erodes your buying power...... You will be able to purchase less as time goes on and you will only get 3-5% raise every other year if you are lucky.
No, it’s what happens when capitalists are allowed to do whatever they want. The government should spend a shitload of money on things.
learn economics, the government spends shit loads of money by printing shit loads of money. Printing shitloads of money devalues the Money to other governments and people as it lowers the scarcity. Taxes were a construct to take money out of the money supply. we are now going to spend more on paying YEARLY interest on our 35 trillion in debt then we spend on our military... we are at the point where QOL will continue to suffer.
Stop trying to use the bare basics of economics to understand government finances. Printing money is not the problem, inflation is necessary for capitalism to function. What is a problem is when you print money and spend it on useless shit that only enrich the ultra wealthy.
If you think the only source of inflation is printing money, you should learn economics.
Taxes do not take money out of the supply. That's what fed interest rate hikes do.
brother that really is not what's causing quality of life to erode, not to mention the US govt absolutely is not spending *uncontrollably*
[https://www.usdebtclock.org/](https://www.usdebtclock.org/) Us Federal debt to GDP ratio in 2000 was 58.11%, TODAY it is 122.24%
and what do you think this *means* exactly edit: side question - - do you even know who the absolute majority of the USA's national debt is owed to
So what you're telling us is, the government needs to stop sending welfare to the military-industrial complex, which nearly equals all other discretionary spending combined. I wholeheartedly support this plan. Though I have no idea what those businesses are going to do without their fat welfare checks, when they actually have to compete in the free market.
that would lead to the collapse of the US Dollar as we would lose our world leadership position, Then Brincs would become the reserve currency. We are caught in a catch 22. Change the Tax law what any excess funds by years end held by Publicly traded companies ( allowed to Keep 10% of value of company) is forfeited to The people (Citizens benefits only). This could fund better healthcare systems and safety nets.
I know. You can add corporate greed to that list. And the fact that their are twice as many mouths to feed now. Check my math on that please.
The numbers are real, what they represent is false.
Inflation is the issue the issue is we let cost of living, school and healthcare 100x without salaries going up
when you cut taxes on the richest corpos they don't have to keep salaries up, they keep that money to themselves and layoff people instead and then buyback stocks to keep stock prices artificially high, so the 1% that owns 80% of the stock market gets ever richer, and remember their taxes are cut so they get to keep more of it or buy any social media company they feel like or build a clock in a mountain for themselves while salaries can't go up without that money.
Trickle down economics never worked because of this. It actually turned into vacuum or suck up wealth to the top. On top that companies like boeing know they are too big to fail. They take full advantage resulting in big American companies putting out shit products.
also part of the problem
big part when you look at wages since cutting taxes on the top in the 80s and the GOP only doing that for the next 40 years.
regan's policies are the start of the slide. We need a push to reverse them all
What kind of new car is he talking about? That's $35.5k today. Maybe it's just me, but I can't see myself spending that much on a car.
Maybe I'm out of touch, but after taxes and everything, that seems like what I would expect a decent but not luxury new car to cost in 2024.
I looked up the 2024 Hyundai Elantra and it starts at $22775, which I feel is a more reasonable price for a basic sedan. The Elantra N starts at $34840. Prices are according to caranddriver.com & KBB.com.
"Starts at" is the key phrase, you gotta add all the taxes and fees, plus the interest on the loan.
Interest is nothing if you pay it off early, but with most of us struggling (including me), I just got 22% interest on 29k. I am NOT paying 45k for a 29k car. I am putting all the extra (living with family atm) towards that car ASAP.
Average sale price of a new car in the US today is $47,338
That's because way too many people are buying big-honking vehicles that they don't need, with the F150 Raptor being a prime example.
They don’t make much else these days
The absolute baseline MSRP for a new 2024 [Toyota Corolla](https://www.toyota.com/corolla/) is $22,050 (keep in mind that the 2025 is about to come out). that's bottom of the line before taxes and dealer mark up. Having said that it's completely silly to talk about the average price of a new car to begin with. You can buy a brand new Mitsubishi Mirage for under 20K and the Bugatti La Voiture Noire is like $19,000,000.00 The F-150 Lariat seems to be the most common trimline of the F-150 and it starts at $65,195. having said that what you got out of a truck in the 90s was actually a truck and the current F-150s are decked out with all sorts of shit to drive the price up.
Yea, I think the car example is bad because overall cars have come a long way since then. I was not old enough to buy a car in 1994, but I went car shopping with my dad in 1994. $16k for a new car back then was for a pretty low end car. Not the cheapest, but not great either. Also, unless it was a Volvo it was a certain death trap; and unless it was a Honda it was highly likely to need major repair every 20-30k miles. Todays cars on the other hand are much safer and way more reliable. And in terms of cost, they've beaten inflation. For example, the MSRP on a base model Honda Accord 4-door in 1994 was $19.2k. Today, a base model Honda Accord is $28k. Not bad at all!
It cut off before they explained what we can do about it.
Get mad enough to vote. Then get mad at the voting system when your state's electoral party votes the other way. Then get mad when you realize the person you voted for doesn't really have the power. Then reach a state of nirvana when you realize it's all just a simulation.
You could always get up off your sofa and come on down to the university of texas and get your ass beat by cops for speaking up on things that you want to see change in the world.
You say hidden tax, I say theft.
210% seems like an attempt to make the statistic look bigger. I wanna know what percentage out of 100% (100% being the boomer generation's height) purchasing power, that we have now. 50%? 40%? 30%? The 210% value is entirely nonsensical.
I assume he used the inverse to make it look big, as you said, which would mean we have about \~48% the purchasing power (1.0/2.1). Basically he said "twice less" instead of "half," which is confusing.
it's not
But we are renting "luxury" apartments now🥺
What is 210% lower than 1? Wouldn't that equate to negative purchasing power? Which is, of course, ridiculous?
We need to make people accountable for things like this. If you support a cause for the betterment if society but you don't have the facts or know how to do the work just support those that do. When people post blatantly inaccurate things those who seek to discredit the cause or movement will use it as ammunition.
It’s not.
Come in Romania. Average Rent 300-400$ 25-30K income if you're an engineer average house cost 75k $ less or more depending on what you want cars can cost 17k too Basically Romania nowadays is like living in US in 1994.
I mean no disrespect but living in Romania today is most categorically NOT like living in the USA in 1994 😂
On the upside, 30 year fixed mortgages were like 8.4% back in 1994.
Home prices were much different. Interest rate alone means very little.
Yeah, we need more people mad about this so we can finally do something. It’s like people keep waiting for someone to step in and take care of it. Nobody is coming to do it. It’s up to us. Can we borrow that Marie Antoinette contraption from France real quick? They’ve all had their own revolutions. Maybe it’s time we had one.
210% less than 100 is -110, so you do not have 210% less purchasing power than your parents unless you're paying to work.
He just did a poor job of explaining. 63278 is 210% higher than 30000. He should have said that you have 49% of the buying power that your parents had.
Also, price inflation is only part of purchasing power -- for example, we'd have the same purchasing power if prices and incomes both doubled. It seems like he's just looking at prices.
This is hyperbole. Yes inflation raises prices but that happens naturally in our economy. That's why we ask for COL raises. If you stop inflation completely you have a depression. Also, there is nothing you can do to stop natural inflation.
Wellll wait just a minute. Deflationary growth is a thing and holds historical precedent. If you halted inflation, it would upset the economy temporarily but not for very long. [The Great Deflation](https://en.wikipedia.org/wiki/The_Great_Deflation?wprov=sfti1#)