In 1960, the USA minimum wage was $1.00/hour and the cost of the average house was $11,000.00
Read Hunter Thompson’s book, “Hells Angels.” He’s got a chapter on the economics of being a biker/drop out/artist circa 1970. A biker could work for six months as a Union stevedore and earn enough to hit the road for two years. A part time waitress could support herself and her musician boyfreind.
$1 an hour full time is 60 ounces of gold. That is 160,000 in todays money. Inflation statistics regurgitated by the imf world bank and wall street are skewed using consumer price index which wails miserably to account for the devaluation of currency due to the increase in circulating currency supply. The price of gold does this perfectly. When nixon ended the gold standard in ‘71 minimum wage had been raised (an eighth time since it was legislated in 1938 at 25¢ an hour or ≈15 ounces of gold)3 years earlier in 1968 to $1.60/hr or $250,000 today.
The price of good stayed constant for 172 years from 1799 when a federal currency was established till 1971 only fluctuating ≈80% from $19 to $35 but in the 53 years since then it has ballooned 7500% to $2650 last i checked. This is in tandem with the amount of us currency printed into circulation. By the end of 1979 gold price was already up over 2000% to just under $800 and in 1981 the usa printed the first trillion. Now we are printing one trillion every 3-4 months.
This is why from 1945-1975 one adult working a full time minimum wage job could support a family of four with enough left over to save for retirement their children’s higher education and go on a modest yearly family vacation. But today it would take both adults working 80 hours per week with overtime at a minimum base pay of double minimum wage or quintuple it if federal minimum wage is the default where you are. Minimum wage since has only increased 450-1300% while corporate executive pay has increased 3300%-16,500% in the same time period.
wails Think you meant ‘fails.’ Otherwise a perfect summary of what I’ve been saying for years.
The political end [highly compressed] goes like this. LBJ decides he can win the Vietnam War with a massive push. The big punch turns into a quagmire. In order to pay for the War, LBJ prints money without raising taxes, leading to inflation. Richard Nixon ran for President vowing to end both inflation and the Vietnam War. Instead he kept LBJ’s failed policies and doubled down. When the Arab Oil Boycott hit, it was a disaster for the US.
You know all those fabulous loft apartments you see in Manhattan’s Soho district? They were originally small factories; all those businesses had to flee the city to the South or foreign shores because the cost of energy had tripled.
When Reagan came in and cut taxes for the rich the middle class was doomed.
Fact: in 1995 I worked for less money per hour than a McDonald’s employee, but with my overtime I made way more, and a friend of mine from school & I were able to buy a duplex 1 street off the beach in Florida.
There is no overtime now for the new staff anywhere, so they have to work just as many hours as I did to make 1/3. Horrible.
