In 1950, the average income per year was $3,210. Since the minimum wage was $0.75, people working the minimum wage the average number of hours a week (43) made $1,677 a year. In 1950, a new house cost $8,450. So, if you never spent a penny of the money you earned, it would take roughly 5 years at the federal minimum wage to save the amount equal to that of a new house.
In 2015, the average income per year was $55,775. Since the minimum wage in 2015 was $7.25 an hour, people working the minimum wage the average number of hours a week (34) made $12,818 a year. The average sale price for a new house in January 2016 was $365,600. So, if you never spent a penny of the money you earned, it would take 29 years at the federal minimum wage to save the amount equal to that of a new house.
Why has housing become so expensive? Why did money go so much further in the past? Why could Jimmy Bob work a few years in/out of highschool and buy a brand new house in the 50's but now he needs a 30+ year mortgage?
average isn't a good price to use(way more high end homes now), and interest rates need to be calculated
Oliver Morgan
interest rates in the 50's were very low your other point may be legitimate however I am sure even if that narrowed the gap slightly it would still remain quite tremendous
>Using 1950 >Not checking the data when central banking started >He still does not realize that central banking and keynesianism is the wrost thing to happen to western civilization.
Check how much worktime did the poorest worker needed to buy a house in 1920 just as central banking and (((progressive taxation))) was starting. (after income tax was declared inconstitutional but female suffrage finally consolidated it because muh social justice)
Interest rates are not the problem , the problem is the welfare state and specially income tax.
Things have become so dissorted that the market is not working at all. The rise of homes in the us and worldwide go according to the ammount of money printed to support post 2008 stimulous.
Since the us is a reserve currency you suffered little to no inflation because the world absorved it. But that´s because you can import things in exchange of your shit fiat , but what about things you can´t import like housing or education? Inflation did impacted there.
But since everything is so regulated by keynesian retards , the market never had to adapt for this new conditions.
The next crisis will be the final blow to this shit system.
That´s the wrong question user , the real question is why things were so cheap in the past. It´s a long answer , but in reality everything in this world cost something and you pay a tax to the universe in a way.
You imposse strong labor laws like in europe to have extra bonuses for everything and then you pay this indirectly by having things costing 50% more.
You give women the right to have a month of vacation after childbirth. You pay this when you have to do 2 times the work at your job and then products go 2% more.
You keep adding this list and you end up with the cost with shit liek boomers that restricted construction because it may have blocked the sun of their garden.
You keep adding the list and the reality is not that money is worth less , but that everything cost 15 times more to produce and the cost is added to the product. Housing is the best exampel because new houses not only cost insanely more but are shitter than the ones built in the past.
Lower quality of products and still higher cost because of all the above.
This is the effect of women entering the work force , double the workforce, cut the value of labour in half. Now two incomes are required to run your average household
Elijah Davis
Our economy and monetary policy are geared towards the needs of our jewish corporate overlords. The everyman is fucked.
Camden Nguyen
House in 1950 > Hastily constructed wooden shack > Asbestos everywhere > Shitty plumbing > Inefficient heating > Very very inefficient insulation > Barebones kitchen and bathroom > Insulation, paint and other things acted as propellants in case of fire
House in 2006 > Codes up the ass > Wiring, plumbing, insulation, heating all modern and efficient and SAFE > FUCKHUGE compared to 70 years earlier > Bathroom with heated floor and expensive tiles > Multiroom kitchen with 9 different appliances > Did I mention codes up the ass?
If we permitted 1950 era building standards things would be much much cheaper
The rest is scarcity of land (in popular areas), cheap-as-fuck credit and the wealth of rich people using housing as investments + the economy is such that a mortgage is know implied to be paid by two incomes. Also Nixon
Liam Wright
Look at this chart. Any questions? What’s funniest though is that the (((economists))) who like to tell that economy is a non-zero-sum game react to this graph like “well basically somebody had to get fucked and that’s a good thing it was european working and middle class”
That’s partly why we are more productive. Keeping labor cost low and using the resources elsewhere.
Jayden Torres
Inflation and wage stagnation. Stagflation. Pumping liquidity into the zone (quantitative easing) devalues currency relative to assets (such as real estate and gold). Offshoring and immigration keeps wages increasing slower than fiat devalues.
Its quite simple really, our politicians fucked us all in the ass for corporate payoffs and now we live in a high tech oligarchy.
Samuel James
>Why has housing become so expensive?
Because boomers are using their homes as a retirement nest-egg.
>Why did money go so much further in the past?
General inflation (devaluing of the dollar) causing price increases, combined with government policy cronyism in specific sectors (healthcare, education, housing, etc.) causing enormous increases there in particular.
>Why could Jimmy Bob work a few years in/out of highschool and buy a brand new house in the 50's but now he needs a 30+ year mortgage?
Because automation, offshoreing and immigration have reduced labor demand thus suppressing wages. Employers don't need employees like they used to. Post great-recession companies didn't rehire all the people they laid off. They realized they didn't need them. That's good for those companies but bad for the economy on a whole when nothing takes their place.
Michael Young
>Average income >Minimum wage >Average home price Shouldn't you be using the minimum income and minimum home price for your estimates?
Ayden Moore
That chart you posted suddenly diverges in the early 1970s, right after Nixon killed the gold standard. That is your answer. It's not the whole story but it's the root cause.
Jackson Jackson
>Shouldn't you be using the minimum income and minimum home price for your estimates?
That's at least sort of true. Ancap also tends to degrade into a plutocracy though. That's why I opt for pol-sci based meritocratic libertarianism instead.
Because money went fiat and cheaper replacements were brought in for labor
Caleb Sullivan
Of course otherwise you would end with dictatorship inc.
Minarchy is the solution ,if the state has a tendency to grow and take all power it can then best to oppose it constantly. Also the private sector should not be underestimated , i still remember when letist said we needed space for routes , justice and space exploration..
They removed the last one after spacex btfo statecucks , to give you an idea of how much the state got btfo , an expendable falcon heavy launch cost less than 1 single shuttle engine.(and this is not even inflation adjusted).
graph is misleading because a lot of that money went into paying for health insurance
Ethan Wood
>Minarchy is the solution ,if the state has a tendency to grow and take all power it can then best to oppose it constantly. That's what pol-sci is for. If you can identify what causes/encourages the expansion of state power, and what prevents its reduction, you can make a much more stable country that stays close to minarchy.
Caleb Lewis
Mass immigration has artifically increased demand for housing, driving up the price, whilst simultaneously flooding the labour market & driving down wages.
The upper 1%, who runs the government, are getting rich off this policy and aren't going to change it because fuck you. Fuck you. You piece of shit.
Fuck. You.
/thread
Sebastian Perry
the world is becoming more competitive for money, women and resources. The imbalance will eventually result in war.
this is the true answer, but Jow Forums will blame the jews
Nicholas Barnes
Nice deflection.
"Immigration must be kept high to keep wages low" - Alan Greenspan
Henry Jackson
this
Luke Thomas
jew. capitalism can create all sorts of perverse incentives, but its always the jews who follow them
John Cook
This so much.
>need to pay the city a permit change my water heater.
Jeremiah Ortiz
This is retarded. Compensation is based on scarcity of labour, not productivity. The guy who presses the "ON" button on the car factory assembly line is more productive than the guy who builds the car entirely by hand but he deserves to be paid less.
Dominic Lee
who do you think are responsible for those (((building standards)))
Brayden Myers
So close
Jack Flores
This is the real redpill.
Angel Martinez
Except that's bullshit because land isn't cheap either.
Matthew Roberts
based white man
Michael Fisher
Digits checked. Seems like if you physically removed jew things would be a lot better.
i mean, wages were also 300 times lower. it doesn't mean we've lost anything along the way
Evan Campbell
I guess the 1950s was that perfect intersection supply and demand
As a single mother to 2 boys, my grandma was able to buy a house and 120 acres of land while working at a blue jean factory as a seamstress Granddad died in the Korea war if there's curiosity on that point.
Christian Campbell
Take a few minutes to look at the other things I posted and then look up the Bretton Woods system. You'll thank me.
Robert Jackson
Well you had your own cow
Anthony Russell
Woke , but Nixon was not the fault , the system was broken by default , having it tied to gold meant that inflation had another layer above to prevent it.
But the core of the problem is that the free market can´t adjust salaries for inflation if you are the nation of the world reserve currency.
Sure salaries would go up if you can´t even eat as no one would work for less.
But being the world reserve currency means you can import anything you want. Except housing , education , healthcare..........
And thus salaries remain the same because mass produced products have remained the same price or even lower , yet housing , education and healthcare have seen insane increases in costs.
It´s a fucking problem worldwide for the top currencies and those like us with shitfiats as Argentina are in an even worse situation.
At the core of the problem is central banking , it was a mistake a big fucking mistake.
Yeah I’ll say this. Granted, my house is a 1954 and costs $189,000..... but has been renovated quite a bit upstairs.
Brody Hernandez
>muh immigrants if you dont have em, you will have workforce shortage, so no thats not a reason why you need to work twice as much to put a roof over your head, just a roof, not some fancy modern building >le permits american never and will never build quality houses for cheap, so bringing that up as excuse just show you are underage middle class with boomer parents >no land really, really, america suddenly ran out of land, fucking spastics bullshit
so then why is it like that today, because you are the jews, you will screw eachother for a dollar, you are greedy beyond imagination and when it results in worsening livingstandards, you just say "lel work harder"
Robert Walker
The problem is the "you could get by" , this system has been creating bubbles every a few years and then fucking things even more.
It´s like fiscal entropy , every time they fuck things more and they still find a way to keep it going. And as thus living conditions and cost keep increasing , the only one speaking about this is molymeme and petter schiff.
On universities keynesian shills reign supreme , at least in the ones that get state gibs.
But we have reached a breaking point the system is creating a caste society without any caste responsabilities and thus we are on the path of a social collapse as soon as the next crisis happens.
Carson Long
real estate speculation wasnt a thing yet.
houses were seen as a regular good, like joghurt or clothes.
nowadays, they are used by the top 1% as "assets".
John Ramirez
yeah, but your are forgetting that this shit in 1950 was still not easy to make. sure if you build a house today like they did 50 years ago you will save a lot of money. doesn't mean it was cheap or easy to make 50 years ago.
that was non plus ultra. by todays standards you would still get a lot more for your money.
Cooper Phillips
Real estate speculation exist because fiat loses value every day , and gold and silver are manipulated.
Caleb Myers
>Why has housing become so expensive? Jews >Why did money go so much further in the past? Jews >Why could Jimmy Bob work a few years in/out of highschool and buy a brand new house in the 50's but now he needs a 30+ year mortgage? Jews
Adrian Wilson
It's verified fact
Dominic Gray
>Why has housing become so expensive? Because boomers got greedy, turned housing into a asset they could profit off, invested in multiple properties and wanted massive profits. Only way to achieve this was to boost demand by mass importing in anyone they could find. Now you have too many people and not enough housing. Thats before i even go into all the rich foreigners who have been making the problem even worse. >Why did money go so much further in the past? Because the cost of living was so much lower and we didnt have to compete with a bunch of foreigners who shouldnt be here in the first place. >Why could Jimmy Bob work a few years in/out of highschool and buy a brand new house in the 50's but now he needs a 30+ year mortgage? Because banks got greedy to and want to enslave you for life. Hence the 30 year mortgage.
Luis Bennett
Excellent analysis user
Jace Bailey
Houses are so expensive because of government backed loans and the fact that interest exists. If interest was illegal the banks wouldn't loan people money and if you can't get a loan, then house have to become reasonably priced so that the buyer can purchase the home instead of having to pay on the house for 30 years. In turn the prices for the materials used to build the house would have to be cheaper to make it worthwhile for the developers to build the houses and so on and so one until every single big ticket item that requires a loan unless you are super rich becomes afforded to the average middle class family. I'd also like to say that the massive reduction in the buying power of the dollar has contributed to this 20 dollars today is no where near worth what it was even 10 years ago thanks to the fed reserve.
Christian Rogers
1965 immigration act.
Luis Wood
> Why has housing become so expensive? Federal intervention in the housing market plus immigration policy fucked us. Feds bring in infinity muds while at the same time basically forcing banks to loan to said muds so they arent "redlining". If neither of these things happened we would probably be experiencing a population plateau or decline, which would drastically increase home inventory, making housing cheaper. Also (rural aside) buying a house has basically become a game where you chase white areas and leave negro/other area. Or as the shitlibs always say "I'm moving there because the schools are better". >Why did money go so much further in the past Semi responsible monetary policy and a facade of the gold window. Combined with this we had the manufacturing capacity keep our gdp high. Also people were must more trusting of institutions in general back then. >Why could Jimmy Bob work a few years in/out of highschool and buy a brand new house in the 50's but now he needs a 30+ year mortgage? 50s Jimmy bob probably had money saved from high school jobs. 50s Jimmy Bob probably had better skills working with his hands at 19 than the vast majority of semi skilled laborers today. Jimmy Bob was fed better quality food, better educated, and met his virgin wife at 17. Jimmy Bob wasn't competing with pedro or jose for low level jobs and cheap housing. Jimmy bob only had to avoid small black enclaves, 90% of Jimmy Bob's country was safe. Jimmy Bob's parents probably left him something substantial to put towards a house or pay off the remainder of his mortgage when they died. If Jimmy Bob wanted a desk job he didn't need a worthless piece of paper that cost 100k, he took a iq test and a test for conscientiousness to place him in the company. Jimmy Bobs friends weren't addicted to opiates. Jimmy Bob's wife wasn't a screaming banshee. Jimmy Bob's kids weren't trannies. The state wasn't weaponized against Jimmy Bob yet.
Logan Gray
The short answer is that you're being taxed more.
It's not a direct tax, instead what happens is that the government pump money into the economy through things like QE which causes inflation of the currency and the spending power of that currency to go down. At the same time as the value of the dollar is dropping, peoples wages aren't increasing at a fast enough rate, so year on year everyone is effectively getting paid less. It also devalues everyones savings, so if you stick cash into a bank account and simply leave it, the inflation significantly outpaces the interest which means every month you have money in the bank it's bleeding away, which dissuades saving.
That money goes to government who waste a good 20%+ on pure bureaucracy, and a lot of the rest is distributed on dem programs for the dindus. Funny really because everyone takes the piss out of libertarians for wanting smaller government with less control which would solve this problem extremely quickly.
Jose Morgan
Inflation, scarcity of resources, supply and demand. Also, productivity is no longer tied to salaries, and 13% of the population are independent contractors.
Camden Martinez
Go build an hardwood framed or double brick house like they did before the war and let me know how your finances pay out. Houses are getting worse quality, at least here in aus, not better. Our kitchens are chipboard, the frame is pine, the trusses are pencil thin. Ive worked in architecture for ten years. Youre wrong.
>if you dont have em, you will have workforce shortage No, that's what drives wages up and keep the economy with a maximum degree of inequality. When you import workers, you prevent wages from rising, worsening inequality and families incomes.
Logan Nguyen
the entire baseless fiat money, dept based system needs to go. money should have real value tied to it, loaning money you dont have needs to be made physically impossible
Jackson Carter
Open borders depresses wages, increases inequality to the benefit of the elite who pays less to sustain their gigantic corporations. They don't care about you.
