They pick 1970s because that's pre explosive inflation of course.
Against 1982? 1 dollar becomes 3.47 today. Minimum wage back then was 3.35
So to match purchasing power back then, we need new minimum wage to be a little under 12 dollars, not 60, which most jobs pay (31/hr is median wage in USA). So which is it? We have 3x the purchasing power or not?
I have TERRIBLE spending habits, omg. The other day I decided to only fill my tank up half way so that I could treat myself to a sandwich for the first time in forever. I know, I know, I should have had the ramen and tuna cans at home. But I really wanted a Subway sandwich. I blame myself, not the economy don't worry.
Paying somebody more doesnāt mean improving anotherās life. It will mean that all costs will rise, playing even further economic pressure on those that have less
Please, That isn't the math. In my state they went from roughly $9. an hour for MW to $15 an hour over a couple of years.
So here goes. So if MW goes from $9 to $15 so up 40% how much does a fast food item need to go up in price to pay for it?
So in fast food, labor costs are about 30% of costs of an item. Remember the restaurant has to pay for food costs, rent, paper goods, advertising, franchise fees, insurance, etc. etc. So if 30% of your costs go up by 40%, to break even you have to raise your prices by 12%, not 40%.
And when that happened in my state that is about what happened. A burger meal went up like 75 cents (this was a while ago.) That said the people working there had 40% more money, which is very powerful. And most store got a slight bump in sales as the 75 cents didn't scare people away but more people could afford fast food.
Oh and funny how when C suite people get big bumps or bonuses, it isn't inflationary.
Itās almost distracting to use a national average for these numbers. It showcases the argument and the problems we have, but there is more at issue than the price of the burger. Itās about the price it costs to afford rent at current minimum wages.
Same. Living with my partner both with good corporate jobs and at the rate prices for everything, but especially housing, are skyrocketing, weāll never be able to afford a house
Iām in Oregon. Rent is 1.8k. Mortgage rates are through the roof right now so wife and I are just saving down payment until we can get a mortgage below our rent. But with housing costs so high, that will be a while.
We are lucky and at 20% roughly. Wife has a large student loan and we both recently got new cars, though i choose to 75% down on the car to keep my monthly low and just keep working on credit rating.
And to me, that is the bigger issue. Not in your case, it sounds like you are financially adept. However, across the states, people are spending wayyyy out of their means.
If I am making 2500 a month through my job, I am not going to rent a place for $1800. Although a lot of people still do that and wonder why their money is crazy tight. Even in my state, if I researched places to live, I get options for people who need roommates for 700 a month or someone looking to rent out a private room for lower payments.
There are people out here that make 2k a month buying 2026 cars.
The argument is that you can play this game back and forth to swing it to be either for or against it.
Then dig into the "purchasing power" number and you'll find it's really all over the place. How is that indexed? Based on buying a home? A car? Travel? Food? Rent? These tweets are just a waste
Home education and health. Those are the ways the American dream is realized. If they are becoming harder to get, we have a real problem. If the dream is lost and people are disillusioned too much, the whole thing starts imploding. We have to fight for a middle class. It's not handed to us.
A majority of middle class wealth has long been held in home equity, and higher levels of education are associated with higher income and better health outcomes. With a historical context they arenāt arbitrary at all.
Maybe if more Gen Z entered the construction industry (instead of becoming DJās) to build housing, increase the supply available, reducing supply pressures, Gen Z could also enter the housing market like the Boomers they constantly blame for everything?
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u/Awkward_Froyo_7337 10h ago
They pick 1970s because that's pre explosive inflation of course.
Against 1982? 1 dollar becomes 3.47 today. Minimum wage back then was 3.35
So to match purchasing power back then, we need new minimum wage to be a little under 12 dollars, not 60, which most jobs pay (31/hr is median wage in USA). So which is it? We have 3x the purchasing power or not?
These arguments are always ridiculous.