Has your income kept up?

[Airpark]

Have heard for some time that since about 1967 the U S Dollars has about halved in buying power every ten years.

Sitting in the doctor's office yesterday, waiting for my wife's appointment, read that it now takes a mere $266,000 to purchase what you could have bought in 1967 for only $37,500.

Just over a seven time increase/decrease in buying power in about 55 years.

Has your income kept up?....Mine has NOT!


Now, I know that Cajun Lawyer is WAY Ahead...but he ain't most of us!

 

[LVSteve]

Sitting in the doctor's office yesterday, waiting for my wife's appointment, read that it now takes a mere $266,000 to purchase what you could have bought in 1967 for only $37,500.
.
.
.

Now, I know that Cajun Lawyer is WAY Ahead...but he ain't most of us!

If that was for a house I can well believe it. The cost of buying a home as a percentage of your income has jumped a huge amount since the 1960s, and not just in the US.

Cars have gone a bit that way due to consumer demands for technology, better refinement and safety regs.

Food has probably gone up because there are more of us but the same amount of productive land. Add to that the increases in transport costs and the latest health overheads and the prices were bound to go up.

Conversely, appliances and home electronics are probably better and cheaper now than they were 30 years ago.

As for Caje, he lives in a special parallel universe.

 

[Comrad]

I think the cost of homes has gone up because this latest crop of buyers isn't happy unless they put themselves into bankruptcy with the purchase of a gigantic stuccoed nightmare of a 4,000 sq ft McMansion.

 

[Lost Lake]

So is the question whether I make 7 times as much money now as I did in '67?

Well I was 3 in '67 so I can't answer that, but as for when I started really working in the 80's, yes I make more than 7 times that amount.

And technically I guess a fair question for me would be whether I make 4 or 5 times what I did in the 80's and of course I can say yes to that.

Back then (80's) a starting wage was in the low $2 an hour range. I ran a construction company at the end of the 80's and had no problem hiring good workers for $10 to $12 an hour.

Now of course $12 an hour is poverty.


.

 

[pharmer]

I do make more than 7X. However, when I started working for formal (check) wages in the summer of '69 ($1.60/hr), out of $60 earned I kept $58. All of the deduction categories were the same (except for health insurance which I haven't paid for until about 3 years ago). About 10 years ago I was a pharma rep. Got a one-time bonus for a pill launch of $10,000. After deductions my cut was $6,050. I don't remember hiring a "partner." And that's why we are all "behind." Joe

 

[feralmerril]

Google is your friend. Just go here.
DollarTimes.com | Inflation Calculator

 

[Old 44 Guy]

In 1967 I was making $149 per week. And when I retired in 1988 I was making $615. Now with pension & SS. I'm just above the poverty level.My pension has increased a whopping $195 a month in the last 25 years. My union really screwed us. No cost of living.

 

[rwsmith]

I feel like I was keeping up.....

.....until around 1980. It's been nothing but a downhill slide from there.

 

[Cal44]

, read that it now takes a mere $266,000 to purchase what you could have bought in 1967 for only $37,500.

Just over a seven time increase/decrease in buying power in about 55 years.

!

Not sure about 1967, but I bought my first house (condo actually) in 1975 for $41K in Silicon Valley.

Interest rate on the mortgage was 9%.

Now interest rates are less than 1/2 that.

So, houses are more affordable right now in many places than they have been in many years.

In Sili Valley (Mtn View, CA) that condo now would probably go for $500K so it has kept up.

YMMV based on where you live.

I'm retired now, and obviously took a hit in income when I first retired, but we have rental properties and we have been able to refi those several times to very low rates and thereby increase cash flow.

Life is good.

Now if the government can keep from going broke ...

Dave

 

[mg357]

Everything is getting more expensive and that is very horrible.

 

[feralmerril]

I probley make about the same as I did in the early 60s, but then again I am retired. I definetly had my up`s and downs. I remember hireing on the conservation dept back in wisconsin in 1962 for $320s a month. 1960, 1961 the national park service for about $2.00s a hour. A movie studio guard for universal studios was about $1.90 back in 1964, a lockheed guard in 1965 for about $2.45, worked in the late 1950s for $1.00 a hour in cannerys, a foundry in 1959 for about $2.00s hr, that was considered a well paying job back then.
No lie. I know for a fact the average wage job here in utah (a right to work state) pays $2.13 a hour plus tips!!!! Just a couple days ago a waitress at one of the best chain resturants out there told me thats what she gets plus I had heard the same several times since we moved here 8 years ago. I couldnt feed our cats on that! Then I hear how snowden made $220,000s a year as a high school drop out computer geek as a goverment contractor. AND threw that away! Yup, makes you proud to pay your taxs!

 

[fat tom]

It must have. I sure buy a lot more **** than I did in the 60's and all the bills still get paid.
f.t.

 

[lonejacklarry]

In the last half of '67, I was on my senior trip to SE Asia. Lessee, here--E-4 w/ under 2 years, flight pay, and combat pay--I think I was at about $280/ month. That was $177 base, $55 flight pay, and $50 combat pay.

Later at E-5 over 2 years, it went to about $310 base, $70 flight, and $50 combat, totaling $430. I did not stay around for the huge pay hike at 3 years.

So, yes, my income is considerably more than 7 times higher. How could it not be w/ the military rate of pay?

 

[feralmerril]

My first house in palmdale california was $12,500s in 1969. I ended up giveing it away. But thats another unbeliveable story. My secound one was a brand new 4 bedroom in lancaster calif for $86,000 in 1981. It probley went high as $270,000 after I sold it but then the bubble burst and it probley sells for The same $86,000 again.
My first 3 or 4 cars I gave about $45s to $100s for, and they ran! Now if I could have kept them to now, they probley would bring 15 to 20K apiece! A tank of gas now cost me as much as each one of what I paid for those cars! Of course gas was around .27 cents a gallon back then and I even remember seeing it for .11 cents once at a gas war. Ever heard of such a thing as a gas war? Oh for a bag of 10 hot dogs or 10 hamburgers for a buck again! The funny thing is with the prices I quoted of those cars and gas, my dad was ranting and raveing about buying his first old car for $15s etc!

 

[smokindog]

IMHO, you're being short sighted if all you're considering is income. When I started in the corporate world in the 70's, it was about the package. Current earnings and future earnings (retirement and all). I passed up some very lucrative openings early in my career only because of the "package". Hindsight shows I messed up as I watched rules and regulations from DC destroy many a Company I worked for, taking my "package" and destroying it.

Well in the past 40 years, most of us corporate employees have lost pensions and retirement health care. To make up, we demanded higher wages. As that happened, many others seemed to have secured gold plated pensions/benefits and then demanded their tax supported salaries and benefits be increased to keep up with our pay.

I now hear I'm not paying MY fair share, bleeding taxes, and wondering how in the hell I'm going to ever have enough money saved to pay for health care and living expenses with what is left after paying for everyone else to retire! Hell, I don't even know what it's going to cost!

I often have a similar "discussion" with my lifetime school employee brother who comfortably retired at 55 with an inflation protected pension for life, health care coverage for 55-65, and gap insurance beyond that after listening for 30+ years how HE was under payed. He never had to move to keep a job, he never lived under the threat of losing a job, he never worried about downsizing, and he didn't have to spend 1/2 his life at 35K feet.

Sorry if my rant just irritated some but I'm so tired of public service emloyees and others who scream how they aren't compensated in line with corporate america. The general employee in corporate america has been screwed the past 40 years.

So to answer the question, my salary has kept up but my security to retire has not.

OK, I'll bet I'm in trouble now!

 

[LTC]

E3 in 1967, probably about $140 a month give or take. No flight pay or other add ons. Separated in 1970 as an E4 at probably $260 give or take.

So yes, I'm doing better than 7 times 1967 wages

LTC

 

[BearBio]

All I know is that the last two Presidents have denied us COL allowances, merit raises, monetary awards and now, sequester. No, I'm falling behind. And, since we can't replace those who retire, our workload increases. We went from 16 biologists and 3 Supervisors, and 2 admin down to 6 biologists, no admin and 2 Supervisors. No less work. And people want to know why they can't get their water projects approved!

 

[hanken]

I work for a screen company making screens for coal mine prep plants. Have not had a raise in almost seven years. It looks like if the powers in Washington have their way it won't be long I might not have a job at all.


Sent from my DROID RAZR using Tapatalk 2

 

[ChuckS1]

Gotta agree. I'm a lot luckier, I suppose, than others. I retired from the Army and went to work for a couple of years as a "beltway bandit" doing consulting work for the Navy and then went to work for Lockheed Martin. The reason I switched was for the pension plan LM had. NOW, 14 years later, my part of LM has discontinued the pension for new employees and is barely giving out cost-of-living raises. In the meantime, where before LM would move employees around to different contracts as the need arose, it's become a body shop, looking for employees who'll work for the lowest pay and least time off. Why? Because of the pressure to keep profits up. Up till now, all my work have been on DOD IT contracts and you'd be surprised at how many non-US citizens are working on sensitive (not classified) projects, including a lot of mainland Chinese programmers. But I digress, sorry. For the federal employees who complain they aren't paid enough, all I can say is from what I see every day, they're paid too much, since they usually don't do anything at all on the contracts I work on, other than attend meetings and take up space. And to top that off, any real work that gets done by the Government program offices isn't done by federal employees, but by their support contractors they hire. Sorry for the rant, but we could get rid of half the federal workforce and not miss them one bit.

 

[finesse_r]

In a Short Answer, NO

Have heard for some time that since about 1967 the U S Dollars has about halved in buying power every ten years.Sitting in the doctor's office yesterday, waiting for my wife's appointment, read that it now takes a mere $266,000 to purchase what you could have bought in 1967 for only $37,500.Just over a seven time increase/decrease in buying power in about 55 years.Has your income kept up?....Mine has NOT!Now, I know that Cajun Lawyer is WAY Ahead...but he ain't most of us!

Actually the over all increase is more like 10 to 12 times the mid-1960 prices. A car that cost 2500 in 1965 now costs 30,000 plus. Gas in the mid-1960s ranged from 19 cents to 26 cents a gallon for regular, depending on if it was on sale or not. Today it is in the $3.25 to $4.00 range. Precious metals like gold and silver which are the best indicators of real inflation are more like 20 times the 1960 prices. A coke from a vending machine was 6 cents for a 6 oz and 10 cents for a 10 ounce give or take. Today it ranges from $1.00 to $2.00 depending on where the machine is located.

A pair of Levis was $3.99 a pair and today that same pair of Levis is $25.00 to $35.00 depending on style and location. Sugar was 5 cents for a 5 pound bag, and God only knows what it is selling for today. Milk was about 25 cents per gallon and today it is over $3.00.

Anything that actually shows the real inflation rate is dropped from the items the federal government uses to establish inflation.

Working men and women's salaries have generally not kept pace with inflation for a long time. Professional and executive salaries have often exceeded inflation.

In recent years Social Security has fallen way behind actual inflation rates, despite the law that requires SS to keep pace with inflation. Falsified and cherry picked data is used to cheat retirees out of billions every year. Then it is wasted on foreign aid and benefits to illegal aliens.

 

[feralmerril]

I might be wrong but in these days it looks like working for the federal goverment is the best for benifits and pay. Next to that various other levels of state, county and city goverments. Out in the private sector the largest corporations have did a turn around. I retired from lockheed aircraft. Since I worked there they have chopped benifits on everything. While I was there it started. They hired part time guards to take our overtime. They put caps on wages, took away a lot of bennies etc. Before the large corporations it was all the smaller grocery stores and resturants etc that started cutting back on the hours of full time employees so they werent considered full time and they didnt have to buy them health insurance etc. It wasnt always that way. Many years ago goverment jobs paid lower and corporate paid better.
I can see why someone wants to be a leo or firefighter now days as I dont belive there are even a few corporate jobs that can begin to match the retirement, medical ins, stability and wages in the secular world. I am not talking about a tiny community or village constable here but the larger citys and populated countys. I hear about teachers etc that they cant even be fired! When one does get their breast in the wringer you hear that they are suspended, but STILL GET FULL PAY! What a deal!
Everyones situation is different. Location can make the same house cost $80,000 in one area and $300,000 in another. Here the going waitress wage is $2.13 a hour plus tips. Probley some couples work two jobs apiece to hold things together yet live next door to people that know how to work the system and dont work at all! Its a lop sided world!
Just before I retired in 2,000 I was single. I think my medical was around $25 a week roughly. Now for my wife, I pay over $700 a month, and supposedly it would be even more if lockheed wasnt paying part of it!
The foremost first thing ruining this country is medical expenses and insurance. Thats for a number of reasons. People seeing the doctor for next to nothing wrong with them, the welfare and hospitals paying for indigents and illegals, the pharmacys and all medical personnal thinking they deserve a fortune etc. All the pork and special intrest groups and programs would be next. Right now we see where the IRS has been partying away many millions of dollars. Money means nothing to them.
It cant continue this way a lot longer.

 

[tops]

Correct! Larry

 

[USAF385]

Now of course $12 an hour is poverty.


.

$12 an hour makes you rich! That's almost $25,000.... Well... According to the government that's waaaay above poverty.

The 2013 poverty guidelines has $11,490 for one person being the poverty line. It seems like it should be higher to me. That would be $5.50 an hour if someone was working 40 hours a week. Yikes. At minimum wage that's about 30 hours a week to get to $11,490.

$15,510 for two people is the poverty line.

 

[smokindog]

For those of you old enough to remember, it was back in the late 70's and early 80's that the discussion of "attracting the good people to the government" and "pay like the private sector" and "Unionized public sector" really took hold. MANY of us saw the beginning of the end. The public sector was NEVER supposed to compete with the private sector, that's why it's public SERVICE! As soon as there was incentive to leave the private sector that inovates and raises its own capital to the public sector that stagnates and takes capital from the private sector, the economic engine would begin to stall. Well we're in down right clogged air filter mode these days. I've got to shell out probably $20-$25K to support the retirement of my public sector friends in the form of taxes/living fees before I can have my first dollar of retirement income. This doesn't include sales and other consumption taxes as I spend my left overs! How does one retire in that world?

I might be wrong but in these days it looks like working for the federal goverment is the best for benifits and pay. Next to that various other levels of state, county and city goverments. Out in the private sector the largest corporations have did a turn around. I retired from lockheed aircraft. Since I worked there they have chopped benifits on everything. While I was there it started. They hired part time guards to take our overtime. They put caps on wages, took away a lot of bennies etc. Before the large corporations it was all the smaller grocery stores and resturants etc that started cutting back on the hours of full time employees so they werent considered full time and they didnt have to buy them health insurance etc. It wasnt always that way. Many years ago goverment jobs paid lower and corporate paid better.
I can see why someone wants to be a leo or firefighter now days as I dont belive there are even a few corporate jobs that can begin to match the retirement, medical ins, stability and wages in the secular world. I am not talking about a tiny community or village constable here but the larger citys and populated countys. I hear about teachers etc that they cant even be fired! When one does get their breast in the wringer you hear that they are suspended, but STILL GET FULL PAY! What a deal!
Everyones situation is different. Location can make the same house cost $80,000 in one area and $300,000 in another. Here the going waitress wage is $2.13 a hour plus tips. Probley some couples work two jobs apiece to hold things together yet live next door to people that know how to work the system and dont work at all! Its a lop sided world!
Just before I retired in 2,000 I was single. I think my medical was around $25 a week roughly. Now for my wife, I pay over $700 a month, and supposedly it would be even more if lockheed wasnt paying part of it!
The foremost first thing ruining this country is medical expenses and insurance. Thats for a number of reasons. People seeing the doctor for next to nothing wrong with them, the welfare and hospitals paying for indigents and illegals, the pharmacys and all medical personnal thinking they deserve a fortune etc. All the pork and special intrest groups and programs would be next. Right now we see where the IRS has been partying away many millions of dollars. Money means nothing to them.
It cant continue this way a lot longer.

 

[carpriver]

In 67 I was an e-2 in the Air Force bring in $97.00 a month. 1164 a year. In December 1967 I took my senior trip to south east asia. still and e-2 my pay jumped, $15.00 overseas pay, $67.00 a month hazard duty pay, $ 30.00 per month TDY pay, $77.10 non viability of rations and quarter's. a total of $247 a month. I am now retired, by income has dropped $10 grand a year. Our standard of living didn't chance that much because we were spending that much a year to work; gas, meals, continuing education, professional licenses, journals. Since 67 I have seen my income go up yearly.

 

[old bear]

I've been very lucky; my income not only has kept up but has grown over the last few years. I also have every reason to expect that trend to continue. It helps that the Lovely and Charming and I don't lead an extravagant life, very comfortable but not outlandish.

I'm really worried about the future of our country, the American dream as our parents and many of us knew it, is on life support and the prognoses is not looking to good right now either. Job security is a thing of the past; employee/employer loyalty is almost nonexistent, interest rates are down, and consumer pricing is up across the board.

I personally know of two instances of corporate mid-management types whose base salary is right at $200,000.00 annually both have the time in to retire but don't feel that they can as both have college age children who need their support.

It's a sad state of affairs and I don't see any improvements coming along any time soon.

 

[51plymouth]

I look at how long does it take to buy something. In 1973 I bought a new pickup for six months wages, in 2005 another new pickup for six months wages. How many hours does it take to buy a pair of shoes etc. I have been fortunate that my income has pertty much kept up with inflation.
My worry is for the younger folks, their incomes are dropping, and with fewer jobs to be had they are having a hard time.

 

[BigBill]

I can't complain. Right now I'm making the same income I made before my retirement. I had a blue collar job with the corporate benefits. I had there 401k benefits. I slammed my 401k savings plan. For many years. Now if the social security yearly raises would be happening on a regular basis it could be better.

I lost my job in '83, I worked only 3 months in '84 before being let go again, I worked only 3 months in '85, and again worked only 3 months in '86. I lived on 10k for each year. I went to the local grocer on Thursdays for marked down meats. We had 100 tomato plants in the garden plus veggies. If you take a jar of tomatoes, a pound of ground beef(meat
Sauce) with a pound of pasta and some home made garlic bread we had a good meal that's cheap. We learned to live in a very affordable way. We made it thru the bad times. Now when things got better we still lived in the affordable manner. Spending just enough to live on. Even today 25 years later I still buy marked down meats and what's on sale too. We still can tomatoes and live off the fresh veggies from the garden too. My kids are grown and very healthy too. We try by to eat food with chemicals in it when we can too. I do not spray my fruit trees too. As a kid we would cut off the part where the bad spots on the fruit were and eat the rest. Any worm holes we would cut that out too. Overall still live on just 10k on average today. Once you see how to cut corners and still live good your hooked on it.

I pound of fresh string beans, a stick of pepperoni sliced thin, cooked in tomato sauce with some fresh garlic bread is another good meal too.

You would be surprised how little you can live on.

 

[spoon22]

As a 21 year old, I can safely say that lots of people my age will never retire. Ive already began investing for retirement, hopefully that works out

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[Cal44]

As a 21 year old, I can safely say that lots of people my age will never retire. Ive already began investing for retirement, hopefully that works out

Great on starting to invest at a young age.

I graduated from UC Berkeley with a MS in electrical engineering and computer science in 1973.

Went to work for IBM and was able to buy a condo in Silicon Valley two years later.

I know some young engineers with similar college degrees to mine who graduated in the last few years.

One guy, now 25, the son of one of my college friends now works for Microsoft as an engineer and bought a house at age 25 just as I did in 1975.

He makes about 7-8 times what I did when I was his age.

So, if you have an advanced education in an in-demand field you have kept up and done quite well.

The problem is, our economy no longer provides much opportunity for people with only a high school deploma or with a degree in some "useless" field like History or English.

Everyone in the US now days competes with Chinese workers who are willing to work for much less money.

The only way to prosper is to be ahead of them in skills.

Dave