Raphael wrote: ↑Thu Apr 16, 2026 1:06 pm
malloc wrote: ↑Thu Apr 16, 2026 1:03 pm
Raphael wrote: ↑Thu Apr 16, 2026 8:00 amThe old economic reality has been destroyed, and the median American voter is just going to keep ping-ponging back and forth between parties as each tries and fails to bring it back.
Sure but one must wonder why the old economy has been destroyed. The technology to make things affordably still exists and indeed automation has only advanced over the years. Logically this should translate to increasing abundance and thus affordability. Yet somehow we are faced instead with ever-soaring prices.
Developments in economic policy and the structure of the economy. In other words, looting the rest of us got easier and ever easier for the super-rich.
You are both, I'm afraid, inventing a fantasy rosy past.
You don't want to live in a time of generally falling prices. This is what we call a "depression." It means business has ground to a halt: no one want to invest. No one wants to spend, either, because your money becomes more valuable if you simply hold onto it. Huge numbers of jobs are lost.
Inflation is not some sort of conspiracy of the rich. As Adam Smith noted 250 years ago, the rich
like periods of recession or depression. They have money and can weather the crisis by doing nothing. And the pressure to raise wages disappears.
Economists believes that a small amount of inflation is good. The Fed is mandated to intervene if inflation goes above 2%. It's worth noting that ordinary people, though they hate rising prices, also hate stagnant wages.
It's not the case that prices are always rising or that some golden age of manufacturing let people buy great products at low prices. The realisty was that you could buy pretty good products at high prices.
Apple Macintosh (1984): original price $2495, about $7500 in current money. 128K RAM. Compare the MacBook Neo at $599, with 8,000,000K RAM.
First commercial microwave: the Radarange (1947): $2,000, or $29,000 in current money. 340 kg. You can buy a microwave today at $140; it weighs 15 kg.
Lasalle, the car Archie Bunker recalled fondly (1927): $4,700, or $87,000 in current money. It looks like the Chinese BYD will be available in Canada for $25,000, or US$18,250.
Mobile phones: Motorola DynaTac (1983), $3,995, or $14,000 in today's money. You can get a Samsung Galaxy for as little as $200.
Refrigerators: GE offered one in 1965 for $258, or $2730 in today's money. You can get one at Best Buy for $500.
How about non-technical things? Harvard tuition was $1520 for the 1961-62 school year, or $16,800 today. Score one for The Past: tuition next year is $57,328.
Price of eggs in 1965: $0.53 per dozen, or $5.61 today. It's on sale at Jewel for $3.99.
LOTR plus the Hobbit: $3.80 when I got mine in 1970, or $33 today; it's $25.17 on Amazon.
You could quibble on some of these, as prices for new products tend to go down. But the comparison still tends to go against The Past. A microwave cost about $425 in 1980, $1800 in today's money.
How about incomes? The median family income in 1960 was $5600, or $63,000 in today's money. Today it's $84,000. (Note that medians avoid the distortions caused by income inequality. Medians are the number where half the population earns less, half earns more.)
There's a lot to deplore about modern capitalism— but mostly because it no longer distributes productivity gains to everyone, but only to the 10%. Plus, you know, the idiocies of modern finance, such as throwing trillions of dollars at fads. But we should try to get our facts right and not contribute to false nostalgia.