Wednesday, June 23, 2010

The Increase in the Standard of Living Sort of Sneaks Up On You

In 1964, here's what the average American consumer could afford after working 152 hours (almost a full month) at the average hourly wage then of $2.50: a "moderately priced, excellent stereo system" from Radio Shack on sale for $379.95. 

In contrast, the typical consumer today working 152 hours at the current average hourly wage of $19 could afford this "cornucopia" of electronic goods:

The decline in life expectancy and the standard of living will be just as sneaky, as Obamacare and other Obama regulations start to kick in.



  1. This is a great post. Reminds me of Ringo's Law:"Everything the government touches turns to crap." Which explains why electronics provides better products at lower cost while health care offers the opposite. See here for a review of how Ringo's Law effects health care:

  2. This is good but imagine how much better off we would be if there were true free markets during this period. It boggles the mind the standard of living we could be enjoying today.