Inflation….

[jett3663]

So, we all agree that everything costs too much. I was looking at the 2024 Corvette today which has a base price of $68k and change.
The average American income is just under $64k.
In 1981 the base price of a Corvette was $16,800. I was a blue collar worker in a factory in 1981 and was making $16k/year.
As bad as I dislike current administration this was waaaaay closer than I would have thought……

 

[JBWJr]

Inflation is your money buys less as there is more of it. It may be clocking along but it's not a good thing.

 

[Hayata]

1981? Inflation was pretty dang bad back then too. Remember the Carter years?

During 1981, inflation in both retail and primary mar- kets slowed to the lowest pace since 1977. The Consumer Price Index for All Urban Consumers (CPI-U) moved up 8.9 percent, following increases of 13.3 and 12.4 percent in 1979 and 1980.

 

[BHPSteel]

1981? Inflation was pretty dang bad back then too. Remember the Carter years?

During 1981, inflation in both retail and primary mar- kets slowed to the lowest pace since 1977. The Consumer Price Index for All Urban Consumers (CPI-U) moved up 8.9 percent, following increases of 13.3 and 12.4 percent in 1979 and 1980.

And let's not forget that interest rates were through the roof - which they needed to be to get that inflation rate down. Paul Volcker was maybe the only good appointment Carter made during that utterly awful administration.

 

[GFB]

Was the 0-60 time on an ‘81 really over 8 seconds? That was a lot of money for something that slow.

 

[CTS Tactical]

The early '80s is the last period you want to compare to. The economy being so bad back then is why I decided to go back in the military after having been out for over 3 years. Carter really had things screwed up. From my POV it was worse then than it is now at least for me personally. Even as an E4 in the military I couldn't afford to buy a home. Interest rates were insane.

 

[GFB]

The early '80s is the last period you want to compare to. The economy being so bad back then is why I decided to go back in the military after having been out for over 3 years. Carter really had things screwed up. From my POV it was worse then than it is now at least for me personally. Even as an E4 in the military I couldn't afford to buy a home. Interest rates were insane.

I see your point, which makes a lot of sense, except for the E4 buying a house thing. That’s definitely not “buy a house” territory traditionally.

 

[CTS Tactical]

I see your point, which makes a lot of sense, except for the E4 buying a house thing. That’s definitely not “buy a house” territory traditionally.

Maybe not. My Mom and Dad bought a house when he was an E4 in the air force and had 5 kids. It was not much of a house. We lived in it and remodeled it room by room and they made a good profit when they sold it 8 years later. That was in 62-70, just for comparison.

 

[TheSnail]

In the early 90s I spoke with my next-door neighbor about mortgage interest and he said they bought their house in the 80s with a mortgage interest rate of 18%. Can you imagine how high that is? Mine right now is 2.75 and I think 8-9% would be crippling. I just calculated it and a mortgage payment of 18% would 4X my current payment. Making mortgage payments on an 800K home @ 2.75% would be the nearly same amount as a 200K home @ 18%.

 

[GFB]

Maybe not. My Mom and Dad bought a house when he was an E4 in the air force and had 5 kids. It was not much of a house. We lived in it and remodeled it room by room and he made a good profit when he sold it 8 years later. That was in 62-70, just for comparison.

When my dad was an E4 my parents had an “apartment” with no bathroom that was basically a couple rooms in a house. When I was an E4 I got an apartment with another E4. It was pretty basic. I honestly don’t remember anyone buying a house at that rank pre-GWB pay raises. Which doesn’t go against your point that the economy sucked in the early 80s. By all accounts it did.