Courtesy of Mish.
Reader Mel writes …
Hello Mish
I really enjoy your blog. You provide a very interesting viewpoint. One question: I have seen an analysis based on the old Sears catalogs of 30-50 years that shows how much more an average income can buy today versus 30-50 years ago based on actual prices in the catalog. It is very convincing. Do you think that is a valid approach or not?
Keep up the good work,
Mel
Hello Mel
I cannot comment on the catalog because I have not seen it. However, I will suggest that many such comparisons that I have seen are invalid.
For example, I have seen reports comparing home prices and car prices today vs. the average house or car in 1920. But how valid is such an approach?
I suggest, not very. For example …
- How much house did you get in 1920 vs. today?
- Did it have dual pane energy efficient windows? Appliances? Carpet? Cabinets?
- How much electronics was in a car 50 years ago?
Would you even want to drive a 1920’s car today? Legally, you probably couldn’t, for safety reasons. Thus, all such comparisons are totally invalid.
Easy Comparisons
Food and energy costs can easily be compared.
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