Comment by stouset
1 day ago
I’d love to see some of that disinflation you’re talking about. From my perspective, luxuries have gotten cheaper while basic necessities like food, housing, and medicine have become dramatically more expensive across the board.
More and more it’s seeming that the “societal benefits” from the last fifty years of progress have largely been concentrated at the top.
There are a thousand medicines that have experienced literally infinite deflation over 50 years: not available at any price to having a finite price. GLP-1s, Trikefta, Mavyret, Checkpoint inhibitors to name just a few recent blockbusters. People complain about insulin prices, but the insulin from 50 years ago costs 25-50 $/mo (https://www.walmart.com/cp/relion-insulin/8418641), it's the new stuff that wasn't available 50 years ago that's more expensive.
Spending on food as a percent of income has declined significantly (~30%) over the past 50 years: https://ourworldindata.org/grapher/food-expenditure-share-fa.... The decline has flatlined over the past ~20 years, but at least some of that is affluence meaning we choose to eat out instead of cooking at home.
House spending as a percent of income also seems to have declined over the past 50 years (https://economistwritingeveryday.com/2023/04/26/spending-on-...). To be honest, this one surprised me, I would've bet the other way.
> There are a thousand medicines that have experienced literally infinite deflation over 50 years
There are always individual counterexamples. And yet as a whole the cost of healthcare has exploded.
> at least some of that is affluence meaning we choose to eat out instead of cooking at home
A lot of that is poverty, not affluence. People working two jobs and living in food deserts aren’t cooking a lot of meals at home. It’s expensive being poor.
The cost of "the healthcare that was available 50 years ago" has cratered in price.
> People working two jobs and living in food deserts aren’t cooking a lot of meals at home
The percent of people with multiple jobs has declined over the past 30 years: https://fred.stlouisfed.org/series/LNS12026620 (longest time series I could find)
Since about the late 1500s, a bushel of wheat has cost within an order of magnitude of £1. By contrast, in the late 1500's a farmhand's wage was 1 pound + room and board.
Right now it's £5.60, but that says more about the decline of the British Pound than an increase in the price of wheat.
Massive food price deflation has been one of the wonders of the modern world. Hopefully the last few years were only a small blip on this overall trend.
If you compare with the early universe right after the big bang, the upward trend is even clearer!
There were several revolutions, major wars and genocides in between 1500 and now. We would like to not have to go through similar events to get things back again.
"It might get better in 500 years" is not exactly comforting thought.
Health care, housing, and education are the drivers of the cost of living / wage crisis. Wheat is not. Furthermore, you know this. Why did you choose to steer the conversation away from the problem?
The comment they responded to literally listed food as a basic necessity. Are you not aware that bread comes from wheat?
3 replies →
Expectations have also increased. Friend from a middle class family grew up with 4 siblings in a 75m2 apartment. You'd get raised eyebrows for that today.
Cheap food is still cheap. If some doomsday scenario ever comes along, I'll be forever sorry to not have stocked up on 6 years worth of calories that now cost less than a monthly salary. World market prices per metric ton: wheat like $300, rice $500.
But that's not mutually exclusive with absurd levels of wealth concentration.
A popularly-shared graph on that subject, with everything pegged to 2000 as a baseline:
https://www.visualcapitalist.com/inflation-chart-tracks-pric...
Doesn't include foods, but it certainly punctures the "That family isn't aaactually in financial trouble, they have a refrigerator and a phone and a TV" statements from certain pundits. (A class of people who are often disconnected from the average person's budgeting situation.)
>basic necessities like food, housing, and medicine have become dramatically more expensive across the board.
they haven't. In the early 1900s an American household spent roughly 50% of its income on food. And mind you food didn't mean an exotic fruit you flew in from the other end of the world or pounds of meat per week.
Today an American household spends 9% of their income on food, the 'dramatic increase' may have bumped that up to 10% by some measures. The size of the average house of the average American family in the last half century has doubled while the family size has halved. In the 1960s 12% of households had AC access, today it's over 80%. Generics of basic medicines cost virtually nothing, you've just started to consume more sophisticated medicine over time.
If you're an ordinary guy you are already living in luxury, you just don't notice it because you kept moving the goalpost on what luxury is. Which isn't per se wrong but you ought to be at least aware of it
Correct. To be fair, housing costs are out of control in many areas. But this is almost entirely due to governments preventing housing from being built, so it's baffling to see so many people blame this on "capitalism".