[BarryRX]

Originally Posted by tomwed

This was copied from the McDonalds site.
“Since the total cost varies from restaurant to restaurant, the minimum amount for a down payment will vary. Generally, we require a minimum of $750,000 of non-borrowed personal resources to consider you for a franchise. Individuals with additional funds may be better prepared for additional or multi-restaurant opportunities.”

OK== let’s do the math.

If you make $7.50 an hour and started saving your money, you would need to work $750,000/$7.5= 100,000 hours to buy your own McDonalds.
When I was a junior in HS [1968] the minimum wage was $1.60 an hour. Do you think a McDonalds franchise in 1968 cost anything close to $160,000 [$1.60 x 100,000 hours = $160,000] My hunch is that a franchise cost closer to $40,000. I could not find that number online.

Cost Of Living 1968 How Much things cost in 1968
Yearly Inflation Rate USA 4.27%
Average Cost of new house $14,950.00
Average Income per year $7,850.00
Average Monthly Rent $130.00
Gas per Gallon 34 cents
Average Cost of a new car $2,822.00
Movie Ticket$1.50
NJ College $175/semester state college $250/semester Rutgers University
The Federal Hourly Minimum Wage is $1.60 an hour

I got mine now you get yours holds true when the cost of living is proportionate.

And don’t get me wrong. I don’t begrudge the guy that owns the McDonalds a single dime. My aunt and uncle owned 2 Dairy Queens. They worked 12 hour days, 7 days a week with all my cousins helping when they were not in school. I’d be quite surprised if that family didn’t work just as hard and take just as many risks.

I don’t know what the solution is but people my age [boomers] were privileged because of the sacrifices of our parent’s generation in addtion to the political and economic decisions made by our elders. I will always be in their debt.

I see what you're saying, but some things are just not governed by inflation. The price of a McDonalds franchise is worth a lot more now than it was in 1964. The same is true of some of the other (but not all) of the items you mentioned. Supply and demand trumps inflation in many cases. In 1980 Apple stock was $22. Before the split a few months ago it was $600. It should be only $68 if accounting solely for inflation. But, one very important stat is true, and that is avg income. Income has been flat for the last decade which means that the working poor has lost about 35% of their spending power over that period. Actually, almost everyone has but it affects the poor the most.