When I think back on what my life was like in 1980, it horrifies me to see how badly the economic environment has deteriorated since then. Let me put try to put it in concrete terms.
|The value of the dollar over time. In this graph, 2012 equals 1.|
In 1900, a dollar was 29 times as powerful as in 2012.
Today, the new Chevy truck would cost $25,000. The average home price in the North Carolina town I lived in is now $300,000. A nine-year-old Cessna 182 can be had for $189,000. Basically, everything costs 6 to 10 times more now.
To live the same lifestyle today that I lived in 1980, four years out of college, would require an income of at least $200,000 in 2014 dollars. Few recent grads make anywhere near that amount.
Life was good in America in 1980. It was really easy to live really well on not much money.
What can I say?
Things have changed.