Comments on: The Cost Of Living…In 1972. http://www.mytwodollars.com/2009/10/22/the-cost-of-living-in-1972/ A place to discuss money...for the rest of us. Fri, 10 Feb 2012 05:21:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: JoeTaxpayerhttp://www.mytwodollars.com/2009/10/22/the-cost-of-living-in-1972/#comment-36147 JoeTaxpayer Tue, 23 Mar 2010 01:37:53 +0000 http://www.mytwodollars.com/?p=2288#comment-36147 Just saw this tweeted again. http://www.westegg.com/inflation/infl.cgi shows that from 1972 to 2009 inflation was in fact just over 5X, $1000 item then would cost $5071 now. Interesting to look again and see what went up 5X and what lagged. Housing? 1972 fixed rate was near 7.5%. Now 5% or so. 1970 new home size 1500 sq ft. 2005 new home size 2400 sq ft. So that $27,600 should adjust for size to $44,160. That puts a bit of a different spin on this, I'd say. It's amazing to consider that when you add the two factors, a virtually steady decline in rates from 1981 to now, along with the steady increase in home size, and then normalize by choosing to adjust by an inflation factor or by an "hours of work needed to pay the mortgage" home prices barely changed over thirty years. Just saw this tweeted again.
http://www.westegg.com/inflation/infl.cgi shows that from 1972 to 2009 inflation was in fact just over 5X, $1000 item then would cost $5071 now. Interesting to look again and see what went up 5X and what lagged.
Housing? 1972 fixed rate was near 7.5%. Now 5% or so.
1970 new home size 1500 sq ft.
2005 new home size 2400 sq ft.

So that $27,600 should adjust for size to $44,160. That puts a bit of a different spin on this, I’d say.

It’s amazing to consider that when you add the two factors, a virtually steady decline in rates from 1981 to now, along with the steady increase in home size, and then normalize by choosing to adjust by an inflation factor or by an “hours of work needed to pay the mortgage” home prices barely changed over thirty years.

]]> By: Everybody Loves Your Money - Living for today – Planning for Tomorrow » Cost of Living in 1972http://www.mytwodollars.com/2009/10/22/the-cost-of-living-in-1972/#comment-34697 Everybody Loves Your Money - Living for today – Planning for Tomorrow » Cost of Living in 1972 Fri, 23 Oct 2009 17:41:39 +0000 http://www.mytwodollars.com/?p=2288#comment-34697 [...] of Living in 1972 By Hazzard David over at My Two Dollars has a great post talking about the value of items in 1972. It’s always shocking to me to see [...] [...] of Living in 1972 By Hazzard David over at My Two Dollars has a great post talking about the value of items in 1972. It’s always shocking to me to see [...]

]]> By: suj'nhttp://www.mytwodollars.com/2009/10/22/the-cost-of-living-in-1972/#comment-34686 suj'n Thu, 22 Oct 2009 23:09:08 +0000 http://www.mytwodollars.com/?p=2288#comment-34686 Egads, I mistyped. I meant 5-10x, not 5-10%. Big difference! Egads, I mistyped. I meant 5-10x, not 5-10%. Big difference!

]]> By: suj'nhttp://www.mytwodollars.com/2009/10/22/the-cost-of-living-in-1972/#comment-34684 suj'n Thu, 22 Oct 2009 22:23:01 +0000 http://www.mytwodollars.com/?p=2288#comment-34684 Egads, I didn't mean 5-10%; I meant 5-10x. Big difference, hmph! Egads, I didn’t mean 5-10%; I meant 5-10x. Big difference, hmph!

]]> By: JoeTaxpayerhttp://www.mytwodollars.com/2009/10/22/the-cost-of-living-in-1972/#comment-34681 JoeTaxpayer Thu, 22 Oct 2009 20:52:54 +0000 http://www.mytwodollars.com/?p=2288#comment-34681 I'm blind, I guess, sorry. So income is up about 4X, that lets you see what increased faster or less than, income. Good post. I’m blind, I guess, sorry. So income is up about 4X, that lets you see what increased faster or less than, income. Good post.

]]> By: suj'nhttp://www.mytwodollars.com/2009/10/22/the-cost-of-living-in-1972/#comment-34680 suj'n Thu, 22 Oct 2009 20:50:00 +0000 http://www.mytwodollars.com/?p=2288#comment-34680 Looks like most things have gone up 5-10% since 1972, with housing and education the highest increase. It's amazing to think that the average house cost only 2.3x the average salary. The ratio now using Dec 2008 median house price and 2008 median income = 3.7x. Food prices relatively low increase. Subsidies? Looks like most things have gone up 5-10% since 1972, with housing and education the highest increase. It’s amazing to think that the average house cost only 2.3x the average salary. The ratio now using Dec 2008 median house price and 2008 median income = 3.7x.

Food prices relatively low increase. Subsidies?

]]> By: Davidhttp://www.mytwodollars.com/2009/10/22/the-cost-of-living-in-1972/#comment-34679 David Thu, 22 Oct 2009 20:39:17 +0000 http://www.mytwodollars.com/?p=2288#comment-34679 They did have the average - Average Income "“ $11,859 per year They did have the average – Average Income ““ $11,859 per year

]]> By: JoeTaxpayerhttp://www.mytwodollars.com/2009/10/22/the-cost-of-living-in-1972/#comment-34678 JoeTaxpayer Thu, 22 Oct 2009 20:20:52 +0000 http://www.mytwodollars.com/?p=2288#comment-34678 I like this stuff as well. I hoped to see median income for the same year, that would help put things in perspective. I like this stuff as well. I hoped to see median income for the same year, that would help put things in perspective.

]]> By: Jen from Losing the Shadowhttp://www.mytwodollars.com/2009/10/22/the-cost-of-living-in-1972/#comment-34676 Jen from Losing the Shadow Thu, 22 Oct 2009 18:34:12 +0000 http://www.mytwodollars.com/?p=2288#comment-34676 My parents bought their house in 1975 and paid about that amount. I was born in 1973 and have seen my birth year book. I like to listen to the stories my parents talk about, which were from about that time. My parents bought their house in 1975 and paid about that amount.

I was born in 1973 and have seen my birth year book. I like to listen to the stories my parents talk about, which were from about that time.

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