78% of Americans live paycheck to paycheck

[Cigarbutt]

16 minutes ago, james22 said:

The first accounts for some of that premium, certainly.

And the second provides perspective, no?

Yes and yes.

For fun, i just spent 45 seconds for an anecdotal perspective.

We bought our house (typical suburb in North America) in 1996 in a 4.5 price to median income ratio environment.

Today, for an almost 100% quality and size compared new home, my kids face a 7 price to median income ratio environment.

When discussed, some suggest then to save more and some to save less. i guess it depends how optimistic you are about future prospects. And yes we do live in an environment of government debt to GDP at typical levels seen during major world wars.

[Jaygo]

1 minute ago, Cigarbutt said:

Yes and yes.

For fun, i just spent 45 seconds for an anecdotal perspective.

We bought our house (typical suburb in North America) in 1996 in a 4.5 price to median income ratio environment.

Today, for an almost 100% quality and size compared new home, my kids face a 7 price to median income ratio environment.

When discussed, some suggest then to save more and some to save less. i guess it depends how optimistic you are about future prospects. And yes we do live in an environment of government debt to GDP at typical levels seen during major world wars.

What was the population of your city in 1996 vs today. I feel that if cities grow out in a circle like a rock thrown into a pond than the equivalent homes in the same neighborhood should go up in real value 

 

For my local, Toronto, the population has basically doubled so a well placed home now has significantly more economic activity surrounding it there so it seems understandable that the price should rise faster than alternatives. 

 

The savings rate thing likely has more to do with personal preferences not to work as hard, long or productively as the past therefore the is less production to go around, pair that with the fact that many items are "improving" like cars so now necessary items are increasing as a percentage of wages. 

 

Ex. If a bricklayer in 1996 could place 800 bricks a day and drove a small pickup with no airbags, power windows, AC etc and now a bricklayer can place 800 bricks a day but his truck now has a V8, leather, AC, power everything, heated mirrors etc it makes sense that on that one item alone he now has less money to save. Compound this by almost everything in our lives and folks have less money unless they increase their productivity or work more.

 

 

 

 

 

[Cigarbutt]

13 hours ago, Jaygo said:

What was the population of your city in 1996 vs today. I feel that if cities grow out in a circle like a rock thrown into a pond than the equivalent homes in the same neighborhood should go up in real value 

 

For my local, Toronto, the population has basically doubled so a well placed home now has significantly more economic activity surrounding it there so it seems understandable that the price should rise faster than alternatives. 

 

The savings rate thing likely has more to do with personal preferences not to work as hard, long or productively as the past therefore the is less production to go around, pair that with the fact that many items are "improving" like cars so now necessary items are increasing as a percentage of wages. 

 

Ex. If a bricklayer in 1996 could place 800 bricks a day and drove a small pickup with no airbags, power windows, AC etc and now a bricklayer can place 800 bricks a day but his truck now has a V8, leather, AC, power everything, heated mirrors etc it makes sense that on that one item alone he now has less money to save. Compound this by almost everything in our lives and folks have less money unless they increase their productivity or work more.

 

 

 

 

 

No, it doesn't appear that population growth in my city played a material part in the relative price increase vs median incomes.

Interesting you mention a bricklayer. One of my nephews (to whom i'm relatively close) is a bricklayer and is not doing too badly i guess but he does strongly feel that "the system is rigged" (his words not mine)..