Is that if you haven't had a raise in a while, you're making substantially less each year.
http://data.bls.gov/cgi-bin/cpicalc.pl
"It's probably the biggest hoax since Big Foot!" - Mitt Romney 1-16-2012 SC Debate
But what I don't tell my boss is that each year I don't get a raise I increase my blood alcohol level at work by the CPI.
The proper concern of society is the preservation of individual freedom; the proper concern of the individual is the harmony of society.
"Who would be free, themselves must strike the blow." - Byron
"Who overcomes by force, hath overcome but half his foe." - Milton
This calculator coupled with the Austrian explanation for why it's happening is something every person on this planet needs to learn and understand and we can change the world overnight.
My personality type: INTJ - please forgive my weaknesses (Not naturally in tune with others feelings; may be insensitive at times, tend to respond to conflict with logic and reason, tend to believe I'm always right, tend to be unwilling or unable to accept blame )
Wages decline in a recession? Gadzooks!
Real wages are being cut. If there was no inflation, it would still be the same, except that it would be via cuts in nominal wages, instead of stable nominal wages.
Not only are real wages being cut but large numbers of workers will no longer be able to get health insurance or retirement benefits through their employer any more, so they are losing the value of those as well.
The middle class is being eliminated by design, and even the working upper class are going to become more and more impoverished if we don't get rid of the criminal psychopaths ruining our Country to consolidate their own power.
Ron Paul: He irritates more idiots in fewer words than any American politician ever.
NO MORE LIARS! Ron Paul 2012
The working upper class is the middle class.Originally Posted by WilliamC
E che sospiri la libertà!
Go the other way. 40,000 now is equal to 1,726.3, which comes to making .83 cents an hour working 40 hours week every week all year long.
"Anarchists oppose the State because it has its very being in such aggression, namely, the expropriation of private property through taxation, the coercive exclusion of other providers of defense service from its territory, and all of the other depredations and coercions that are built upon these twin foci of invasions of individual rights." -Murray Rothbard
Price of gas in 1913 was 8 cents a gallon, which is $1.86 today.
http://wiki.answers.com/Q/What_was_t...soline_in_1913
http://data.bls.gov/cgi-bin/cpicalc....913&year2=2012
There was no gas tax in 1913, federal or state. The first tax per gallon was levied in Oklahoma in 1919. It was 1 cent a gallon, which would be 23 cents today. In 1933, there was a federal tax levied as well. Near as I can tell, this was at the pump like it is today. http://www.wired.com/science/discove...dayintech_0225 (article is from 2009, numbers do not translate to today. For instance, it claims the increase of 1 cent a gallon is equal to 19 cents, the calculator says it should be that 1 cent is actually 22 cents, and today in 2012 it is 23 cents).
So, I shall use 1933 for the comparison. In 1933 the cost of a gallon of gas was 17 cents a gallon. Converted, that is $3.68 a gallon. Gas is actually cheaper today that it was then, once you remove those taxes. The tax in 1933 was 2-4 cents a gallon, total, according to the earlier article. This equates to 46-93 cents a gallon of tax today.
The tax was 11.76-25% of the total price.
http://wiki.answers.com/Q/How_much_was_gas_in_1933
Cost of gas without taxes in 1933 would be (using the highest tax since I'm going to compare it to the number 4 highest of today, Illinois) 13 cents a gallon or $3.01 today.
Today in Illinois there is an additional 62.8 cents per gallon cost because of taxes (includes state and federal, 4th highest in the nation). http://www.api.org/Oil-and-Natural-G...EFFB6585D.ashx
As an aside, this part is actually kind of shocking to me. I expected today's tax to be much higher than of yesteryear.
According to http://www.stlouisgasprices.com/Collinsville/index.aspx price of gas where I live is 3.78 (as of 9:21AM 02May2012, I don't know if that link will auto-update or not) Subtract the tax and you will get $3.15 a gallon. An increase of 14 cents over 79 years or 0.177 cents a year.
Other things to consider is fuel efficiency of vehicles. Take the same car from then and it will get less efficiency today because of ethanol additions, which decreases fuel efficiency since you get less energy out of ethanol than gasoline (that is if the ethanol doesn't destroy your engine which it will). E-85 gases also don't have nearly as much tax (that's why it is cheaper at the pump). There is subsidies to consider, for instance on the corn and ethanol industry, oil industry as well. All of these take more money from us and gives it to those industries. This manipulates cost and price. We also drive faster and drive more than the people of 1933, which decreases economy more (the faster you are going the more energy it takes to maintain your speed against the drag from air, 4 times more each meter per second increase). There is also the regulator restrictions on the entire fuel creation industry.
Then there is this: http://2.bp.blogspot.com/-wsoMz4L_mG...600/gastax.jpg
Exxon makes 2 cents off of each gallon, in profit. The average tax is 48.1 cents. For that 2 cents profit a gallon, we get gas. For that 48.1 cents a gallon we get crappy roads that are built by crews where one guy is shoveling and 6 guys are leaning on shovels watching him (you know you've seen it). We get zero innovation in roads, they are pretty much the same as they were back then, no real technological improvements (you know, like heating or covering the roads which at first would cost a lot, but the savings down the line would be astronomical. If you covered the roads with an arch type covering the roads would be safer. They would not get wet from rain, they would not get snow on them, you would not have to deal with the sun in your eyes, you would not have to deal with the sun heating your car up in the summer forcing you to run the AC as much which would improve your fuel economy. You would not have to deal with ice or snow on the roads, thus you can eliminate road crews that salt the road, you would not have to buy salt each year, you would not have to suffer the ecological damage from the salt run off. Cars would last longer because they would not be eaten away by salt each year. I could go on if I really thought about it).
The next time you complain about gas prices, you should really complain about inflation and the government spending (which is the cause of the cause of inflation. They spend more than they can tax and borrow so they turn to the federal reserve which makes new money. THAT is the inflation and it make the dollar less valuable which drives prices up over time as that new money makes its' way around). If your wage increases aren't matching the rate of inflation, government is making your poorer.
"Anarchists oppose the State because it has its very being in such aggression, namely, the expropriation of private property through taxation, the coercive exclusion of other providers of defense service from its territory, and all of the other depredations and coercions that are built upon these twin foci of invasions of individual rights." -Murray Rothbard
In 1913, the average plumber wage was 75 cents an hour and they worked an average of 44 hours a week. http://www.bls.gov/opub/cwc/cm20030124ar03p1.htm
This would get them $1,716 a year. In terms of 2012 dollars, this would be $39,761.28.
Today, a journeyman plumber makes between $17.59 to $26.49 an hour and between $26.32 and $39.27 for overtime. The combined average annual salary of a journeyman plumber ranges from $37,902 to $59,740. All of this according to: http://www.ehow.com/about_7451288_av...e-plumber.html
This is a range of $1,635.76 to $2,578.23, with the middle being $2107.
Comparison in 1913 dollars: $1716 vs $2107. An increase of $391 dollars or $3.95 increase a year. A 22.79% increase.
Comparison in 2012 dollars: $39,761.28 vs $48,821. An increase of $9060 or $91.52 increase a year. Obviously, still a 22.79% increase.
I would also wager that we pay FAR FAR FAR more in taxes then were paid in 1913. Not just income taxes, but all taxes period. I'd bet anything that a plumber in 1913 was better off financially than a plumber today because of it.
Here is something that shows what a tax form in 1913 looked like. http://politicalcalculations.blogspo...13-income.html
If I did it right, the taxes in 1913 on TODAY's average plumber would be 560 dollars or so. Today, this would be over 2000 easily. Assuming married plumber, no children.
"Anarchists oppose the State because it has its very being in such aggression, namely, the expropriation of private property through taxation, the coercive exclusion of other providers of defense service from its territory, and all of the other depredations and coercions that are built upon these twin foci of invasions of individual rights." -Murray Rothbard
But 95% don't get it because they look at plain face value numbers. "So what if you could buy a house for $30,000 in the 70's, they only made about $7000 a year back then too". Be that as it may I always knew something was fishy about it. If these numbers are comparatively the "same" then why are they changing at all? Something MUST being going on behind the scenes. I can't fathom why this very thought doesn't echo through the minds of so many people; with perhaps the sad but mostly true exception that they're just plain lazy or flat out don't care.
I thought I saw some pretty graphs a month or so ago that displayed real wages increasing for a little while, perhaps up until the late 90's early 2000's. If I were a betting man without doing any research I would make and educated guess that real wages and standard of living have decreased since that time. You can almost feel it in your bones.
Last edited by seraphson; 05-02-2012 at 09:01 AM.
Yes, it's unfortunate how oblivious people are to the effects of inflation. In a year of 5% inflation, your average person who is receiving a 3% raise will practically be dancing in the street celebrating, never realizing that they have actual taken a pay cut.
On the other hand if everybody wants raises, that increases your boss's costs which means he will have to raise his prices to make that up which will add to price inflation. If everybody is trying to get raises to keep up with or even get ahead of inflation it will only make the inflation worse.
It's quite a pickle.
"It's probably the biggest hoax since Big Foot!" - Mitt Romney 1-16-2012 SC Debate
That's why prosperity can only come from increased production. That drives costs down without people having to take pay cuts.
"Anarchists oppose the State because it has its very being in such aggression, namely, the expropriation of private property through taxation, the coercive exclusion of other providers of defense service from its territory, and all of the other depredations and coercions that are built upon these twin foci of invasions of individual rights." -Murray Rothbard
Do people expect to get all of their personal finance advice from their boss?
The personal computer is also cheaper today than it was in 1913! There is no inflation!
They had personal computers back in 1913? Wow. I learn new things every day!
Don't show this to Paul Krugman. Though, he'd probably just blame it on China...Is that if you haven't had a raise in a while, you're making substantially less each year.
http://data.bls.gov/cgi-bin/cpicalc.pl
Rand Paul 2016
1933 sounded familiar, so i did a little search
http://en.wikipedia.org/wiki/Alphabet_agencies
AAA 1933 Agricultural Adjustment Act
CAA 1933 Civil Aeronautics Authority (now Federal Aviation Administration)
CCC 1933 Civilian Conservation Corps
CCC 1933 Commodity Credit Corporation
My god, so much disinformation...
inflation is the RESULT of increased money supply. Money, a commodity, controlled and manipulated by an International Banking Cartel.
LOL. Cost push inflation is a joke.
do the same with water as you did with gas . food would be cool also but you will need to pick 1 that is not subsidized .
You are the Universe experiencing itself
Huh?
I could I guess, but that was a lot of work and I'm a busy person now a days lol.
"Anarchists oppose the State because it has its very being in such aggression, namely, the expropriation of private property through taxation, the coercive exclusion of other providers of defense service from its territory, and all of the other depredations and coercions that are built upon these twin foci of invasions of individual rights." -Murray Rothbard
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