Value of the dollar?

[delmarrey]

In my high school years and working at a gas station earning a youth’s wages, the cost of living seemed to be better then it does now. So I did a comparison in relation to now supposedly earning a middle class wage. And it doesn’t seem that I make a whole lot more now then I did as a youth. I would think after 40 years in a profession (Toolmaker) that I would have excelled my wages more.

In 1966 I could pay cash for a house with 15,150 hours of labor, now it’s 7,666 hours.

A postage stamp, I could buy 40 for an hour work, now 63 per hour.

Gasoline 7.14 gal to 10 gal. now.

Eggs 3.3 doz. to 15 doz. Now.

Milk = 2 per hour, now 11 per hour.

Bread = 9 per hr., 12 now.

A new car would take 1250 hours, now 1000 hours (I’ll give it the increase in technology but they don’t last any longer).

Soft drinks = 20 per hour, now 50.

So it seems food has been a little bit of an improvement, but other needs seem to have increased in cost for me.

But the average wage earner (laborer) in 1966 was $4.08 an hour, now it’s $17.50. Using these numbers:

A house in 1966 was 5,711 hr then to 13,143 hours now.

Stamp = 81.6 stamps to 37.2 now.

Gas = 14.57 gal to 5.83 gal now.

Eggs = 18.55 doz to 8.75 per doz now.

Milk = 4.08 gal to 6.48 gal.

Bread = 18.55 per hr to 7 now.

New car = 612.75 hours to 1,714.28 hr now.

So it seems the average American wage earner has lost more then half of his pay in relation to 1966. Obviously the economy has been falling for a long time as far as the average wage earner goes….

The rich get richer and the poor get poorer. It's no wonder the socicalist are moving in, but then that leads to a dictatorship. We need more people to execise their democracy. It gets harder and hard to start and run a small business. It takes capital to set up and the banks want a good part of the action.

"The rich rule over the poor, and the borrower is a servent to the lender".

[jdoe71]

Not just the banks but look at the crap you go through with all the levels of government. The time alone spent collecting and remitting their taxes is staggering and you get nothing for it. Lawyers and accountants, consultants, business advisors, all taking a chunk just so you can comply with tax laws. Brilliant way to encourage business.

[Tropic Cat]

I can just hear the right wingers when they read this post.....

"Hey... Wait a minute. You must be one of those left wing liberal troublemakers. Why everyone know that Americans are better off today than they were 40 years ago... You must have made up these phony statistics. Why I'm gonna report you to GW Bush himself. We're gonna tap your phone, read your mail, and then throw you in prison without charging you, as you are obviously a terrorist."

(tongue in cheek )

Originally Posted by delmarrey

In my high school years and working at a gas station earning a youth’s wages, the cost of living seemed to be better then it does now. So I did a comparison in relation to now supposedly earning a middle class wage. And it doesn’t seem that I make a whole lot more now then I did as a youth. I would think after 40 years in a profession (Toolmaker) that I would have excelled my wages more.

[wind rose ll]

Did l log onto the Cruisers forum or Bloomgurgs report????
Dave

[David_Old_Jersey]

Dollar falling?

I beleive it is a long term trend - the USD was supported by the simple fact that since WWII it has been the only currency that was backed by a Govt with lots of Tanks and Guns and a willingness and ability to use these worldwide to defend and enhance their economic interests.......which helped them to become the No.1 economy in the world by a country mile.

Also their really was no competition for safe haven status internationally in a currency that was also exchangable at street level in times of crisis.

Economically the US is now rivalled by the EU and ASIA and as these economies grow they will create wealth and more importantly wealth opportunities within their own geographic areas that do not require the USD.

In addition the world has the EURO to rival the USD as a stable currency - I would say that the fact that it was based around a group of countries / economies that are NOT the same is what gives it stability (rather than the opposite) as effectively the EURO is a basket of currencies......but one which can be spent / traded / invested.......but I would guess that it will take a few years yet for a EURO note to be as widely accepted as a USD bill in the streets of a 3rd world trouble spot

I beleive that the US in Iraq has been a bit of an eyeopener to those countries who beleived (or were at least worried by) the US military's claimed ability to fight 2 major conflicts at the same time (Europe and Korea?), even when these conerns did not directly affect them........a bit of local difficulty in Iraq has shown up that for all the US clever weaponary they simply do not have enough soldiers or the national willpower to commit their military long term to enforce their will. Nothing unusaul in this, the Colonial powers carried on for many years past their ability to enforce their will simply because the other folk beleived they could - but eventually they all left because their bluff was called and they could not afford to do otherwise in money and manpower........and like the US (and the Romans beforehand) the Colonial powers also relied increasingly on local allies and foreigners in their regular armies who at the end of the day never share the same commitment.......when you have to hire your own armed forces one day they will not be up to the job......how does this affect the USD? Image and the realisation that the US is not the omnipotent power it once was....

Look back in History and the powers wax and wane - 150 years ago who would have thought that the sun really would set on the British Empire.......or later that they would lose WWII.........to the Americans


BTW not to say that a long term decline in the (relative) strength of the USD and the US economy is either a good or bad thing. It is just how things are.

[Sandero]

Don't confuse politics with economics.

capitalism
socialism
communism

are economic systems

democracy
dictatorships
monarchies
oligarchies

are political system

They can be mixed up

democratic socialism
authoritarian capitalism

get it?

[GordMay]

Originally Posted by defjef

Don't confuse politics with economics...

Well said - to which might be added:
Don't confuse either (politics or economics) with boats, boating, nor cruising.

[Steve Rust]

We used to joke with our Canadian friends about their dollar, "hey that's not a dollar that's 75 cents". Now our shopping malls are full of flannel and parka wearing Canadians with a pocket full of loonies. Maybe now our local shop owners will even accept some of my Canadian change that I have piled up over the years from my many trips north of the border.

[44'cruisingcat]

It might hurt those thinking about buying imported goods, or travelling overseas, but a lower US dollar has to be good for the US. It certainly makes US made goods more attractive to us over here in Oz.

It's bound to boost exports, and increase manufacturing there.

[Microship]

It does, in a twisted way, make me feel good about "investing" in a boat...

[delmarrey]

Originally Posted by GordMay

Well said - to which might be added:
Don't confuse either (politics or economics) with boats, boating, nor cruising.

Originally Posted by Microship

It does, in a twisted way, make me feel good about "investing" in a boat...

Ditto!!

This is why I bought a boat and have stuck with them for so many years. If I ever need to excape the political whims of this country or an attact. A boat would be the best way out. Planes will get shot down. The freeways will get jammed up and the market places will be under control or looted.

The enemy is not going to pay much attention to some slow going sailboat out in the middle of nowhere. They'll be too busy tring to gain control of the masses.

Being self sufficient is the best means of survival. Lets hope I never have to cut out. In the mean time I can enjoy a leasurely sail now and then........................._/)

[Microship]

Also, we usually think of boats losing value over time relative to the dollar, but at the moment it might be the opposite.

Viva self-sufficiency! Was just working today on the beer-brewing system.

Steve

[maxingout]

If the dollar goes up, you should be living your dreams.
If the dollar goes down, you should be living your dreams.

You can't control the value of the dollar, but you can control whether you are living your dreams.

No matter what happens to the dollar, I'm going to be living my dreams.

[Microship]

Dave - very well said! A worthy mantra indeed.

Steve

[David M]

Well...at least a shrinking dollar encourages exports.