Loading ...So, what used to cost $1,000 now costs $26,000, which is about equal with the long term inflation rate. $1.25 minimum wages times 26 S/B $32.50/hr.
A $2500 Chevy pick up back in the day times 26 is $65,000 or more that you would have to pay today for one.
The old $40,000 house from back in the day, times 26 is supposed to be $1,o40,000 today.
So in reality real estate has under performed. If you add maintenance and insurance you lost even more. If you add property taxes too, forget about it. You really got screwed paying rent on the villages land.
Why is real estate so retarded in price? Very simple. The low wages and high property taxes gave it a big head wind on the retail prices. If minimum wage for example was raised from $10 to $35, 250% more, the entire workforce has a value pecking order.
So over time all wages would rise in unison, and higher wages would make higher prices affordable to more people. Kids out of high school would be buying new cars with cash or three year loans, and two-three years out of high school buying new or existing homes, some with 15 year loans.
Pluss the parents would avoid college costs, and get the kids out of the house sooner so they can sell the house and retire.
But the business gov’t Media says it will kill jobs. But in reality it will kill businesses that are NOT lucrative, and the owner can close small business and him and his employees would be able to get a decent job. a good job.
The livable wage would be the LAW that everybody and businesses would have to adjust to, like $145/bb Oil, $4.40 at the pump, and 18% interest rates to buy a house, businesses all adjusted to those things.
It would just be one more thing. It certainly would help retail too, which in turn would help Europe, China, S. Korea, Japan, Bangladesh, Outer Mongolia, etc etc