[thevillages2013]

Originally Posted by nn0wheremann

A Perspective from the Dismal Science of Economics.

As I recall, when gasoline topped $2.00 a gallon the first time, I really felt the pinch. It hurt. I think that was 1980. My Dodge convertible had a V8 motor.

In 1980 the Average Annual Wage was $12513. In 2019 (the last year available not influenced by the Pandemic) the AAW was $54100. That $2.00 gas that poked my pocket in 1980 cost, expressed in 2019 dollars, $8.65. {($54100 / $12513) * $2.00 = $8.65}

I paid $4.08 per gallon in 2022 dollars last night in Florida to fill my gas tank. So yes, inflation is real, it is here, but take a step back, gain some perspective, and quit complaining.

I think that in comparing consumer prices we should use as an inflation index the Average Annual Wage Index. AAW measures changes in wage earners' income, and it is generally income that consumers use to pay prices for everyday purchases. The measure is gathered from earnings records of all Americans who pay FICA tax, so is the broadest and most inclusive measure of income.

Why compare to 1980 when the real comparison is to 2018, 2019. I’m complaining and not going to quit until change happens