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<blockquote data-quote="mamba" data-source="post: 9232477" data-attributes="member: 7034611"><p>First of all, I am not sure your premise that quality of living has substantially increased since the 70s is true</p><p></p><p>“The middle class, once the economic stratum of a clear majority of American adults, has steadily contracted in the past five decades. The share of adults who live in middle-class households fell from 61% in 1971 to 50% in 2021, according to a new Pew Research Center analysis of government data.</p><p></p><p>The shrinking of the middle class has been accompanied by an increase in the share of adults in the upper-income tier – from 14% in 1971 to 21% in 2021 – as well as an increase in the share who are in the lower-income tier, from 25% to 29%.“</p><p></p><p>[URL unfurl="true"]https://www.pewresearch.org/short-reads/2022/04/20/how-the-american-middle-class-has-changed-in-the-past-five-decades/[/URL]</p><p></p><p>“To make matters worse, Americans’ wages have stagnated since the 1970s, with worker productivity <a href="https://www.epi.org/productivity-pay-gap/" target="_blank">growing three times more than pay.</a> The economy of the 1970s also underwent a bout of high inflation, with prices <a href="https://www.cnn.com/2022/01/11/economy/inflation-history/index.html" target="_blank">rising more than 12% in 1974</a>, due in part to the Arab oil embargo.”</p><p></p><p>“The median price of a home in the second quarter of 1972 <a href="https://fred.stlouisfed.org/series/MSPUS" target="_blank">was just $26,800,</a> according to the U.S. Census Bureau, amounting to roughly $189,500 in current dollars. Since then, home prices have climbed 132%. ”</p><p></p><p>[URL unfurl="true"]https://www.marketplace.org/2022/08/17/money-and-millennials-the-cost-of-living-in-2022-vs-1972/[/URL]</p><p></p><p>Even if I accepted the premise, this only shows correlation, not causation. Why is it not because of e.g. moving a lot of production overseas, where production is cheaper.</p></blockquote><p></p>
[QUOTE="mamba, post: 9232477, member: 7034611"] First of all, I am not sure your premise that quality of living has substantially increased since the 70s is true “The middle class, once the economic stratum of a clear majority of American adults, has steadily contracted in the past five decades. The share of adults who live in middle-class households fell from 61% in 1971 to 50% in 2021, according to a new Pew Research Center analysis of government data. The shrinking of the middle class has been accompanied by an increase in the share of adults in the upper-income tier – from 14% in 1971 to 21% in 2021 – as well as an increase in the share who are in the lower-income tier, from 25% to 29%.“ [URL unfurl="true"]https://www.pewresearch.org/short-reads/2022/04/20/how-the-american-middle-class-has-changed-in-the-past-five-decades/[/URL] “To make matters worse, Americans’ wages have stagnated since the 1970s, with worker productivity [URL='https://www.epi.org/productivity-pay-gap/']growing three times more than pay.[/URL] The economy of the 1970s also underwent a bout of high inflation, with prices [URL='https://www.cnn.com/2022/01/11/economy/inflation-history/index.html']rising more than 12% in 1974[/URL], due in part to the Arab oil embargo.” “The median price of a home in the second quarter of 1972 [URL='https://fred.stlouisfed.org/series/MSPUS']was just $26,800,[/URL] according to the U.S. Census Bureau, amounting to roughly $189,500 in current dollars. Since then, home prices have climbed 132%. ” [URL unfurl="true"]https://www.marketplace.org/2022/08/17/money-and-millennials-the-cost-of-living-in-2022-vs-1972/[/URL] Even if I accepted the premise, this only shows correlation, not causation. Why is it not because of e.g. moving a lot of production overseas, where production is cheaper. [/QUOTE]
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