Scary Graphs: Why I don’t feel like I’m getting ahead

If you ever get the ‘I’m not getting ahead’ feeling, the following graphs from the National Inflation Association¬†will help explain why you feel this way.

The median American family was earning over $100,000 per year in today’s dollars during the 1970s.

The average American has been earning less per hour (adjusted for real inflation) and seeing a decline in their standard of living since the early 1970s after we left the gold standard.The Dow Jones divided by the price of gold. After the inflationary crisis of the 1970s, the Dow/Gold ratio bottomed at 1

There has been a whole lot of inflation happening over the past few decades, and as the above graphs illustrate, the average American has been losing ground in real purchasing power.

So, if you here the “hey, the DOW is over 1300 so the economy is back and Obama is great” spin, remember the above graphs. And these graphs as well.

Comments
  • Bunkerville January 24, 2012 at 2:02 pm

    Many of us in Healthcare have had our hours reduced. Not enough hoours for partial unemployment, not enough to be counted in any way. Mostly because half a trillion was cut from Medicare this year, and no one even knows about it, or cares enough since it did not hit Senior.s pocketbooks.Call me, just hanging on.

    • steve January 24, 2012 at 2:14 pm

      Reduced hours are tough. Like you said “Not enough hours for partial unemployment, not enough to be counted in any way.”

      If the government would just get out if the economy and let the markets do their thing, everyone would be better off.

  • 5etester January 24, 2012 at 4:31 pm

    I think inflation is the one argument they can’t get past the people because everyone can feel it. We actually have monetary deflation occurring because of all the Fed money printing along with price inflation which isn’t reflected because we no longer measure food and energy prices in the consumer price index.

    Yet the MSM and the Fed like you to believe that John Williams Shadowstats is some kind of conspiracy site using gimmicky accounting despite the fact he’s only using previously accepted methodology.

    But it’s like a sixth sense. You can just feel it no matter what the ‘official’ numbers say. Unfortunately, the government has absolutely no intention of getting out of the way.

    • steve January 24, 2012 at 5:25 pm

      Plus, the increase in energy prices drive the costs for everything up as well.

      You are correct about the the fact that they can’t hide the loss of purchasing power. Everyone feels it and can sense it is happening.

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