Loading ...HOUSE: In 1950 a new house cost $8,450.00 and by 1959 was $12,400.00. Up 46%.
INCOME: In 1950 the average income per year was $3,210.00 and by 1959 was $5,010.00. Up 56%.
1950 house $8400 house divided by 1950 $3200 income = 2.63 years of income, to buy house.
1959 house $12,400 house divided by $5,010 income = 2.4 years of income. (house got cheaper)
2017 Today, in my area, common house cost $400,000 (with $12,000 tax bill)
2017 Common income, $50,000 each, two salaries needed, $100,000 total income.
A $400,000 house, divide by $100,000 income, equals 4.0 years of TWO common salaries needed to buy the house, or 8 years of one salary, compared to 2.5 years of one salary in the 1950s. That means single salaries were 220 higher in the 1950s. Or the double salaries of today, 110% higher.
To restore the high salaries of 1950 to 1959, (2.5 years of ONE salary to buy one house) would require one salary of $160,000, (or two salaries of $80,000 each) A HUGE deflation in labor values.
This is why the USA has a $19 trillion national debt, and all the stores are closing down. Its NOT Amazon like they spoon feed us. Would Henry Ford have his cars made in Japan and import them back here?? Amazon is a result, not a cause.
Does “Macy’s” et al have all their goods made overseas? Yes. So they DESERVE what is happening to them.
Does the US Gov’t allow businesses to import and promote outsourcing? Yes. So the USA gov’t DESERVES a $19 Trillion debt load.
Are private sector tax PAYING Americans in general, gleefully buying cheaper high quality imported products? Yes. So they also deserve the low salaries.
The above proves why even with a 4% unemployment rate, or even with ZERO unemployment, the economy still sucks wind.