Boomers don’t get it

[ping72]

Today:
Minimum wage: $7.25
Median home: $363,975

In 1976:
Minimum wage: $2.30
Median home: $44,200

That maybe looks reasonable? Here are the 1976 numbers in today’s dollars:
Minimum wage: $28.66
Median home: $220,390

Minimum wage is 1/4 the amount, and a house costs 1.67x more. Today a full-time minimum wage job pays $15,000/year. In 1976 it paid the equivalent of $59,600/year.

Now do that with gas, insurance, food, etc. I do very well financially (I’m just over 40), but I’m getting pissed hearing retirees complain about the lazy 20-somethings. These poor young people can barely afford to live. This is not sustainable. Study history...this is the stuff that leads to revolutions and turning away from capitalism.

 

[ping72]

Another way to look at it:
Median house cost was less than 4x a minimum wage annual salary in 1976.

Today it is 24x.

 

[The Tradition]

That's great, but no one actually makes the federal minimum wage anymore.

Not true of the 1970s.

 

[SeaPA]

That's great, but no one actually makes the federal minimum wage anymore.

Not true of the 1970s.

How many did in the 80s? I honestly have no idea.

 

[artradley]

That's great, but no one actually makes the federal minimum wage anymore.

Not true of the 1970s.

I would venture to say a greater percentage of Americans make less than $28/hour now than made minimum wage in the 70’s. I was sixteen in 1973, and I made 40% over minimum wage in my first job.

There is no question that wealth has shifted away from most Americans and towards to top 5% to 10%.

 

[NorthDSMHawk]

Lolz. OP didn’t even change the title from Reddit.

Lazy zoomer.

 

[Tenacious E]

That's great, but no one actually makes the federal minimum wage anymore.

Not true of the 1970s.

I don’t know what the appropriate comparison would be. Probably median income and median house price.

 

[Rudolph]

That's great, but no one actually makes the federal minimum wage anymore.

Not true of the 1970s.

Lol. So adjust all of the numbers in the OP to less than-equal to $15/hr, which is the pay rate for nearly a third of our workforce.

You never disappoint.

 

[gohawks50]

Today:
Minimum wage: $7.25
Median home: $363,975

In 1976:
Minimum wage: $2.30
Median home: $44,200

That maybe looks reasonable? Here are the 1976 numbers in today’s dollars:
Minimum wage: $28.66
Median home: $220,390

Minimum wage is 1/4 the amount, and a house costs 1.67x more. Today a full-time minimum wage job pays $15,000/year. In 1976 it paid the equivalent of $59,600/year.

Now do that with gas, insurance, food, etc. I do very well financially (I’m just over 40), but I’m getting pissed hearing retirees complain about the lazy 20-somethings. These poor young people can barely afford to live. This is not sustainable. Study history...this is the stuff that leads to revolutions and turning away from capitalism.

I am a boomer and I agree with you. Minimum needs to be doubled and something needs to be done about the cost of a college education as well.

 

[artradley]

I don’t know what the appropriate comparison would be. Probably median income and median house price.

Median Household income 1976: $14,000
Median Home: $44,000
Multiplier: 3.1

Today: $70,000 / $365,000 / 5.2

However, the OP was on point regarding minimum wage, which is supposed to help the lowest of Americans from living in abject poverty, and it clearly has not kept up.

 

[JWolf74]

Starts around 2:10

 

[binsfeldcyhawk2]

Today:
Minimum wage: $7.25
Median home: $363,975

In 1976:
Minimum wage: $2.30
Median home: $44,200

That maybe looks reasonable? Here are the 1976 numbers in today’s dollars:
Minimum wage: $28.66
Median home: $220,390

Minimum wage is 1/4 the amount, and a house costs 1.67x more. Today a full-time minimum wage job pays $15,000/year. In 1976 it paid the equivalent of $59,600/year.

Now do that with gas, insurance, food, etc. I do very well financially (I’m just over 40), but I’m getting pissed hearing retirees complain about the lazy 20-somethings. These poor young people can barely afford to live. This is not sustainable. Study history...this is the stuff that leads to revolutions and turning away from capitalism.

What jobs are going for $7.25? I haven't seen anything being advertised for less that $15 an hr in the Panhandle...

 

[onlyTheObvious]

Compare a starter home in 1976 vs today.

people want everything now. Princess needs that giant house in the burbs with three stall garage, marble counter tops, and walk-in shower right away.

nobody bought a house making minimum wage in the 70’s.

the tax deduction for mortgage interest should be eliminated. It drives up the cost of homes and contributes to the national debt.

 

[bhawk24bob]

Compare a starter home in 1976 vs today.

people want everything now. Princess needs that giant house in the burbs with three stall garage, marble counter tops, and walk-in shower right away.

nobody bought a house making minimum wage in the 70’s.

the tax deduction for mortgage interest should be eliminated. It drives up the cost of homes and contributes to the national debt.

Try again, a starter home is now a 1 or 2 bedroom condo in the real world

 

[onlyTheObvious]

Try again, a starter home is now a 1 or 2 bedroom condo in the real world

Try what again?

the starter homes of the 1970’s still exist. You can even buy them, fairly cheap. Nobody thinks they are good enough anymore.

feels like a matter of time before Dems promise free mortgages. Need lots of free stuff so they can afford to live without making difficult financial choices.

 

[Tenacious E]

Median Household income 1976: $14,000
Median Home: $44,000
Multiplier: 3.1

Today: $70,000 / $365,000 / 5.2

However, the OP was on point regarding minimum wage, which is supposed to help the lowest of Americans from living in abject poverty, and it clearly has not kept up.

I suppose one needs to factor in that houses are on average 1.5 times bigger today than in 1980, and the interest rate for 1976 was almost 9%. With higher interest rates and smaller houses, the prices would be lower, everything else remaining constant. So I'm not sure it is so different from the viewpoint of the median. However, yes, this does not address the low end of the distribution is doing, relatively speaking.

 

[onlyTheObvious]

You can make $17 an hour at a fricking Kwik Star. Who gives a shit what minimum wage is. If you can’t qualify to work at Kwik Star I wouldn’t worry about home ownership, you better worry about mustering up the intellect to wipe your own ass.

 

[Rudolph]

This thread is revealing some serious socioeconomic insularity.

 

[bhawk24bob]

Try what again?

the starter homes of the 1970’s still exist. You can even buy them, fairly cheap. Nobody thinks they are good enough anymore.

feels like a matter of time before Dems promise free mortgages. Need lots of free stuff so they can afford to live without making difficult financial choices.

Where, besides your head, does the market exist in this country where existing houses are not selling or increasing in value?

 

[What Would Jesus Do?]

I’m getting pissed hearing retirees complain about the lazy 20-somethings.

I don't hear anyone complaining about "lazy 20-somethings" and I certainly don't hear any of my fellow boomers say things are easy for those earning MW or close to it.

So please redirect your anger toward those who deserve it - which is mainly Republicans and conservatives. And, sure, plenty of boomers are Rs and cons, so they're fair game. But it isn't because they are boomers.

In other respects, I appreciated your comments and numbers.

 

[ping72]

You can make $17 an hour at a fricking Kwik Star. Who gives a shit what minimum wage is. If you can’t qualify to work at Kwik Star I wouldn’t worry about home ownership, you better worry about mustering up the intellect to wipe your own ass.

And that $17/hr is still only 60% if the MINIMUM wage of 1976 while almost everything is more expensive.

 

[DavidHawk324]

Today:
Minimum wage: $7.25
Median home: $363,975

In 1976:
Minimum wage: $2.30
Median home: $44,200

That maybe looks reasonable? Here are the 1976 numbers in today’s dollars:
Minimum wage: $28.66
Median home: $220,390

Minimum wage is 1/4 the amount, and a house costs 1.67x more. Today a full-time minimum wage job pays $15,000/year. In 1976 it paid the equivalent of $59,600/year.

Now do that with gas, insurance, food, etc. I do very well financially (I’m just over 40), but I’m getting pissed hearing retirees complain about the lazy 20-somethings. These poor young people can barely afford to live. This is not sustainable. Study history...this is the stuff that leads to revolutions and turning away from capitalism.

I don’t understand the math here. So the 1976 minimum wage in today’s dollars is multiplied by 12.5 but 1976 median home is multiplied by 5? If you are converting 1976 dollars to now, why wouldn’t they go up by the same ratio?

 

[What Would Jesus Do?]

Today:
Minimum wage: $7.25
Median home: $363,975

In 1976:
Minimum wage: $2.30
Median home: $44,200

That maybe looks reasonable? Here are the 1976 numbers in today’s dollars:
Minimum wage: $28.66
Median home: $220,390

Does anyone else think this sounds like another looming housing bubble?

If so, will the meager protections that we put in place after the last one - to the extent that they haven't been rolled back - be enough protection?

 

[What Would Jesus Do?]

That's great, but no one actually makes the federal minimum wage anymore.

Not true of the 1970s.

I was wondering how long it would take for someone to trot out this favorite hit from the right. First post by anyone other than the OP.

If "no one actually makes the federal minimum wage anymore" why are Republicans and cons so adamantly opposed to raising it?

 

[DavidHawk324]

I don’t understand the math here. So the 1976 minimum wage in today’s dollars is multiplied by 12.5 but 1976 median home is multiplied by 5? If you are converting 1976 dollars to now, why wouldn’t they go up by the same ratio?

According to an inflation calculator online, it says 5 is the correct multiplier, so your minimum wage converted from 1976 would be $11.50, not $28.66. Slight difference there…

 

[What Would Jesus Do?]

There is no question that wealth has shifted away from most Americans and towards to top 5% to 10%.

Bingo.

 

[Nole Lou]

The premise of this comparison is valid, I don't think incomes have kept up with cost of living.

However, minimum wage is the shittiest way to look at it. People weren't buying houses on the minimum wage in the 70s or 80s either.

 

[What Would Jesus Do?]

Lolz. OP didn’t even change the title from Reddit.

Lazy zoomer.

For all you know, he is the one who posted it on Reddit.

And while you might have a point if you were asking him to credit his source, your criticism has no merit if you are merely trying to deflect from the useful data he shared.

 

[eb05]

Does anyone else think this sounds like another looming housing bubble?

If so, will the meager protections that we put in place after the last one - to the extent that they haven't been rolled back - be enough protection?

yes, i think it’s possible and actually i brought that up on here a couple months ago. this time would be much worse than 2008 considering the fed is now the largest owner of mortgage backed securities in the US.

 

[Nole Lou]

Cost of a house isn't a great way to look at it either.

Most houses are purchased by couples. In the 1970s and 1980s, that mostly meant one income going toward the purchase. Now, it's almost always two incomes. That's going to drive the cost up accordingly based on how much people are willing and able to spend.

 

[What Would Jesus Do?]

You can make $17 an hour at a fricking Kwik Star.

I don't know what a Kwik Star is, but is that actually true? They pay entry level workers $17/hour?

If true, that doesn't sound too shabby.

Clearly that's too much. It's probably the main driver of inflation. [JK]

 

[What Would Jesus Do?]

fed is now the largest owner of mortgage backed securities in the US.

I had no idea.

Does that increase or lower the risk?

 

[Nole Lou]

yes, i think it’s possible and actually i brought that up on here a couple months ago. this time would be much worse than 2008 considering the fed is now the largest owner of mortgage backed securities in the US.

But the results won't be the same though, right? I could see values dropping from what they are, but it shouldn't result in the type of defaults as 2008 because the loan standards have been much higher than they were then, right? We shouldn't have anywhere near the amount of people who default on the loan because of interest only loans, balloon mortgages, etc.

 

[soybean]

I don't hear anyone complaining about "lazy 20-somethings" and I certainly don't hear any of my fellow boomers say things are easy for those earning MW or close to it.

So please redirect your anger toward those who deserve it - which is mainly Republicans and conservatives. And, sure, plenty of boomers are Rs and cons, so they're fair game. But it isn't because they are boomers.

In other respects, I appreciated your comments and numbers.

I sometimes wonder if there is nothing in this world that can't be somehow blamed on us boomers these days?

 

[Tom Paris]

Lolz. OP didn’t even change the title from Reddit.

Lazy zoomer.

He's not wrong. Middle class America is doing nowhere near as well as it was in the 1970s. Thanks, Reagan.

 

[soybean]

But the results won't be the same though, right? I could see values dropping from what they are, but it shouldn't result in the type of defaults as 2008 because the loan standards have been much higher than they were then, right? We shouldn't have anywhere near the amount of people who default on the loan because of interest only loans, balloon mortgages, etc.

Valuations are what will cause this next correction in housing pricing.

 

[ping72]

According to an inflation calculator online, it says 5 is the correct multiplier, so your minimum wage converted from 1976 would be $11.50, not $28.66. Slight difference there…

Crap, you’re right. I was putting numbers into this and I think I screwed up the year.

Inflation Calculator | Find US Dollar's Value From 1913-2024

Easily calculate how the buying power of the U.S. dollar has changed from 1913 to 2024. Get inflation rates and U.S. inflation news.

www.usinflationcalculator.com

 

[Nole Lou]

Valuations are what will cause this next correction in housing pricing.

Right. But it's not going to cause the same level of massive economic/default crisis, correct?

 

[bhawk24bob]

Big difference from 2008 is that there is a shortage of supply. We might see a correction at the top end of each local market as rates increase, but people still need a place to live and investors are still parking cash in real estate, which is driving up the cost to purchase

 

[eb05]

I had no idea.

Does that increase or lower the risk?

But the results won't be the same though, right? I could see values dropping from what they are, but it shouldn't result in the type of defaults as 2008 because the loan standards have been much higher than they were then, right? We shouldn't have anywhere near the amount of people who default on the loan because of interest only loans, balloon mortgages, etc.

this is just my opinion but it probably decreases the likelihood of a large scale crash because the government has skin in the game now and they will act earlier to protect their interests.

i think at some point there could be a sharp increase in defaults due to the large increase in debt americans are holding and low wages comparative to property values.