We earn less, inflation adjusted, why?

Aug 2012
38
FROM 1950 TO 1980:

-The bottom 90% of the people saw an increase of 75% in income
-The top 1% (wealthies) saw an increase of 77% in income

FROM 1980 TO 2008:
LOOKOUT!!:
-The bottom 90% of the people saw an increase of 1% in income
-The top 1% of the people (wealthy) saw an increase of 433%

This is the source:
(from 8:14 to 9:57):
http://www.youtube.com/watch?feature...&v=DryKwh7a3I4

The video points out also why we need now two incomes rather than one, as we used to.

-------------------------------------------------------

For those who argue we spend recklessly today:

According to this video:
http://www.youtube.com/watch?v=akVL7QY0S8A
(from minute 16:40 to minute 24:43 approximately):

We spend today: (INFLATION ADJUSTED!)
-32% LESS on clothing than a generation ago
-18% LESS on food
-52% LESS on appliances

Here it when the difference comes:

We spend today: (look out: Inflation Adjusted!!)
-76% MORE on mortgage
-74% MORE on health insurance
-52% MORE on cars

So, it is easy to understand than 76% more for a house (inflation adjusted!!) is not a luxury, nor a car, if only a car, costs 52% more than a generation ago.
 
Jan 2012
1,975
Texas
FROM 1950 TO 1980:

-The bottom 90% of the people saw an increase of 75% in income
-The top 1% (wealthies) saw an increase of 77% in income

FROM 1980 TO 2008:
LOOKOUT!!:
-The bottom 90% of the people saw an increase of 1% in income
-The top 1% of the people (wealthy) saw an increase of 433%

This is the source:
(from 8:14 to 9:57):
http://www.youtube.com/watch?feature...&v=DryKwh7a3I4

The video points out also why we need now two incomes rather than one, as we used to.

-------------------------------------------------------

For those who argue we spend recklessly today:

According to this video:
http://www.youtube.com/watch?v=akVL7QY0S8A
(from minute 16:40 to minute 24:43 approximately):

We spend today: (INFLATION ADJUSTED!)
-32% LESS on clothing than a generation ago
-18% LESS on food
-52% LESS on appliances

Here it when the difference comes:

We spend today: (look out: Inflation Adjusted!!)
-76% MORE on mortgage
-74% MORE on health insurance
-52% MORE on cars

So, it is easy to understand than 76% more for a house (inflation adjusted!!) is not a luxury, nor a car, if only a car, costs 52% more than a generation ago.
Clothing is made cheaply in China, Indonesia and south America. Food is more abundant due to developed farming techniques. Household appliances are no longer too expensive. More people own their houses, higher costs of health care to cover the expense accrued by people getting treatment for injuries who have no insurance and no money. People tend to use automobiles as a statement, plus insurance is increased, fuel consumption and Maintainence of a more sophisticated machine is more expensive.

If it was too much to spend people would not spend it.