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Using this inflation calculator to check the picture found here.
The calculator says there was 483.1% inflation, that means a 1975 dollar is $5.83 in 2024.
$39,300 house should become $239,144.57.
$14,100 income should become $82,212.17.
$0.59 gas should become $3.44.
$1,500 college tuition should become $9,057.31
$3,800 new car should become $22,156.47
$150 rent should become $874.60.
$2.10 minimum wage should become $12.24
$0.28 loaf of bread should become $1.63
$1.55 movie ticket should become $9.04
Gee, you'd think the calculator might not be calibrated correctly. At least for those specific things.
A 23" Zenith TV was $420 in 1975. It should cost $2,599.78 today. They actually cost $99.
A Colt Gov't model was $175.50. It should cost $1,086.34 today, but actually comes in at $970.99.
Inflation is not even across all things, but calculators try to make it so.
The invisible hand does not care if something is relatively more or less valuable compared to 50 years ago.
I remember $70 Mosin-Nagant 91/30's around 2004. Inflation says that should only be $123.41, they're selling in the mid $400's now.
How much did broadband Internet access cost in 1975? And what about cell phone service using smartphones?
ReplyDeleteOh, and look at the houses pictured for the comparison years. Does anyone believe that the 2024 house could be bought in 1975 for $39,300?
The median home is much larger than it used to be, and you spotted it right away.
DeleteThe house I'm in now is 900 sq-ft, plus one car garage, and representative of the median home in 1975. Its value is following inflation. It was built in 1969 and sold for $20k in 1972 according to the county records. Zillow thinks it's worth $175k now.
I think the current median size is about 2,000 sq-ft with a two car garage.