Forty Plus Years of Inflation

Do young folks have it harder today? There is a lot of argument about that on the internet so I decided to let the numbers do the talking.

The median home price in Q2 1980 was $64,000. In Q2 2024 it was $414,500. Based upon inflation we would expect it to be $247,741. 

The average tuition cost for public universities in 1980 was $804. In 2022 it was $9,750. Based upon inflation we would expect it to be $2,840. 

The average tuition cost for private universities in 1980 was $3,617. In 2022 it was $35,248. Based upon inflation we would expect it to be $12,780. 

The median household income in 1980 was $26,430. In 2023 it was $80,610. Based upon inflation we would expect it to be $96,843. 

So home prices and tuition have outpaced inflation and median income has fallen short.

Those are the numbers. Life is DEFINITELY harder today.

Let's be honest, in addition the minefield was certainly less dense. I graduated college in 1969 from the City University of New York. It was tuition free and I lived with my parents and commuted until I graduated so no student debt. 

I had a $300 1961 Mercury Comet that my dad gave me so no car loan. He replaced the Comet with a $150 Ford Fairlane. 

There were no charge cards so no charge card debt. There was no internet, cable TV or cell phones so these expenses just didn't exist. 

Air fares were regulated so no one but the rich could afford to fly with any regularity so vacations were pretty much limited to where you could get to by car. With no internet there was no online shopping with all the potential pitfalls that come with that. 

Plus, every decent company provided good health insurance AND a real life pension.

So my question is, WTF happened? I thought technology was supposed to make things cheaper and better?