Friday, December 23, 2016
...............................of the economic and technological variety:
Measured in terms of the “time cost” of purchasing household and electronic items working at the average wage, there’s a huge difference between 1964 and today. To purchase the $750 Sears TV in 1964 would have required 293 hours of work for the average American at the average hourly wage of $2.56 in November 1964 — that’s 7.33 weeks, or almost two full months of work to earn the income required to purchase the TV. Today, the average American need only work about 23 hours at the average wage of $21.73 to earn enough to purchase a $500 Samsung Smart HDTV. A $400 laptop would have a “time cost” of only about 18 hours of work today (2.25 days), and a iPod touch would require only 13 hours of work (1.63 days). And isn’t it an amazing sign of the economic progress achieved over the last half century that even a billionaire in 1964 wouldn’t have been able to purchase most of the items above that even a teenager working at the minimum wage can afford today like a laptop computer, iPhone, iPod and Smart TV.
-Mark J. Perry