Quote:
Originally Posted by blankall
Yes things are different.
Basics like rent and food are more expensive. It's indisputable that people spend a much higher proportion of incomes on rent now than they did 20 years ago.
The cost of tuition is higher, and the benefit received from education is lower.
As far as housing goes, when you compare the cost of a house to the average salary of a middle class person, the difference is astronomical. It's not just natural inflation as you are describing. While the price of the home between 1998 and now may have increased 4x, the salaries have not.
So basically, what people are describing as hard times for previous generations, have now been magnified many times. Yes the answer seems to be work harder and enjoy your life less.
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While the prices have outpaced income, that isn't the entire story. Still need to factor in interest rates and fiscal policies. A bit of an apples to oranges situation, but I do stand by the assertion that likely every generation post WW2 have felt the same way as you.
Here is a link to an article that I found interesting. I don't totally agree with the sustainability of interest rates, but it is a very important factor that seems to be missing from much of this analysis.
http://business.financialpost.com/pe...n-30-years-ago