patrick.net

How much did a House cost in 1978?
Health Care?
College?

Housing is the single biggest cost for most households. People don't buy a new Coffee Machine every month, but they do pay the rent/mortgage every month.

Using voluntary, discretionary consumer good purchases as an example of the standard of living is a typical Glibertarian trick to make it seem like things have gotten better.

Oh, and average is misleading: It cuts out the unemployed on welfare or disability, but includes the earnings of Bank CEOs.

What are the MEDIAN hourly earnings in 2014? What did Joe/Jane Average make per hour, right in the middle of employed workers? $17.09

http://www.bls.gov/data/inflation_calculator.htm

$4.71 is a lot lower than $6.00.

As is using averages rather than medians.

Edit--Looks like you updated your post with my point before I even made it.

And the reason housing cost increased so much is because of government meddling.

thunderlips11 says

Housing is the single biggest cost for most households. People don't buy a new Coffee Machine every month, but they do pay the rent/mortgage every month.

thunderlips11 says

$4.71 is a lot lower than $6.00.

Houses today are 50% bigger and better equipped (central air was not common in the 70's for example, kitchens are far superior, much better insulation, etc.). How does one factor that in?

indigenous says

And the reason housing cost increased so much is because of government meddling.

In your world sunspots and hemorrhoids are because of government meddling.

And this completely ignores changes in quality,

Well isn't that convenient? You priced a Walmart unit, which is usually even poorer quality than similar model sold at competitors. Todays cheap plastic crap is tomorrow's landfill fodder.

Conversely, people today probably pay a premium for the four decade old unit, on ebay or at a yard sale

indigenous says

Price of Mr. Coffee coffeemaker in 1978: $31.88

Price of Mr. Coffee coffeemaker yesterday at Walmart? $29.74

A 1978 Mr. Coffee Maker would have to sell for $300 if they were made with the same materials and process.

BUNN today comprable model.
$129 -$179

The Mr Coffee would have had Byterite handles and other plastic mechanical parts. Instead of the polyurethene injection molded plastic they use for everything today.

indigenous says

And the reason housing cost increased so much is because of government meddling.

Yep. Prior to "Let the Freed Market decide", the government was actively involved in building housing.

bob2356 says

Houses today are 50% bigger and better equipped (central air was not common in the 70's for example, kitchens are far superior, much better insulation, etc.). How does one factor that in?

The build of modest homes and apartments is lagging. You either buy a house with all the fixins, or you get nothing at all unless you luck into a deal on an old modest one from the Government Subsidy/Affordable Housing Policy Era. The kind that go for half a million or more in NJ or CA, the kind of housing one-income factory worker headed families used to live in, but now teachers married to dentists can barely afford. Oh, and it was all new construction for Joe Tool & Die, but 40 years old for Mr. Yuppie.

Makes NO Sense for builders to build modest housing in a decent area with decent schools, when they can slap a McMansion on it and make far more money on their investment. The plot costs the same for the builder whether it's a Levittown or Mondo Condo.

For those that think interest rates have a large effect on housing prices, it's quite obvious that nominal prices rose at a pretty constant rate over the last 40 years save for the bubble caused by poor underwriting and rating.

bob2356 says

Houses today are 50% bigger and better equipped (central air was not common in the 70's for example, kitchens are far superior, much better insulation, etc.). How does one factor that in?

The government calls it hedonics which is a charade if there ever was one.Which they use to show that inflation is "really less than it would appear".

Mainly though the government has influenced the market by making interest a tax deduction, government guaranteed loans, ZIRP, and on the negative side restricting land use e.g. the difference in cost of housing in Texas and California, not all but a huge part of it.

bob2356 says

In your world sunspots and hemorrhoids are because of government meddling.

I have never said that.

bob2356 says

In your world sunspots and hemorrhoids are because of government meddling.

I don't know about sunspots, but I've heard that repeated ass fucking can cause hemorrhoids!