Quote:
Originally Posted by jimjamuser
The 1st sentence IS true, but misleading. Wages were high in terms of actual dollars. But, wages have been STAGNATE in terms of CONSTANT DOLLARS for at least the last 20 years. Constant dollars factor in inflation, which even back 2 years or more had been moving at about a 2% CLIP year over year. Constant dollars give a person the idea of what could have BEEN purchased say for 10 dollars in 1990 and how much LESS you can buy with $10 today.
.......In other words, money CHANGES VALUE over time. IN 1965 if I looked around I could buy a running (with some cosmetic problems) USED automobile for $600. I even purchased a 1981 station wagon AUDI with a slant FIVE engine in about 1995 for $600. Today $ 600 will barely buy you a nice new bicycle.
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Full-time loan officer in a bank in 1965 made less than $5,000 gross.