New prices

We have a name for text book economist...

 

A textbook economist? As opposed to what an economist with a shovel in the ground? What the fuck are you talking about. I've been doing this for 15 years.

 

A textbook economist is called, wrong.

A person doing it for 15 years should know...it's an art, not a science.

Take for example the rate cut Jpow did in September of 2024. There was no need for a rate cut and the bond market told jpow he was wrong by the interest rates raising after the announcement. Jpow did the textbook thing and was...wrong.

 

Actually depends on the financial situation of the person and if they have assets. My Mother is in one and pays nearly nothing, nor does the family except for me. Its also very expensive to need nursing care. Of course she was divorced with no spouse, no real estate, barely worked long enough to get social security retirement benefits and only collects a $110 monthly pension check. When you have to go in to nursing care like that Medicaid covers a lot it. She only gets $60 a month for personal items. I have to cover her phone, life insurance and stuff and my two brothers don't help at all. Sure isn't a good life I hope I dont end up in that situation.

 

In 1972 my father made 42,000.
In the early 60's he paid cash, $15,000 for a 3/2 brick house with natural wood floors.

I wondered how he afforded to keep a family of 3 kids, new cars for him and his mistresses, apartments for flings on 42,000.

Well it turns out 42,000 in 1972 was about $340,000 in today's money.
So yea he could live like a king, and he did.

So that means, if I'm making $80,000 today, I should be living like I'm making $680,000....?

What went wrong..?.... our Adjusted Gross Income is like $135,000 so we should be living the millionaire lifestyle... yet we aren't.

Prices went up, but income did not.

I guess when 6 people in this country control over half the wealth we know where all the money went ...

 

I do love me an economist smack down! Woot!

 

$42k in 1972 is $321k in today's money according to this: https://www.usinflationcalculator.com/

If you aren't making $321k, you've been underachieving compared to your father. "You doctuh yet? Come talk to me when you doctuh."

This is not a joke. $42k in 1972 was four times the median household income in the US, so your father was doing quite well. Four times median household income now would be $324k.

 

To each their own, but it's definitely a wild time to be buying. Prices are absurdly high, and with interest rates where they are, financing often stretches well beyond the traditional 60-month term—up to 82 months. That quite a bit of additional money people are paying to finance on top of the purchase price.

I like the new Tacomas, but financially, it’s just not worth upgrading. If I’m lucky, my current Tacoma would cover maybe half the cost of a new one on trade-in. I’d rather put that potential car payment toward mods each month—especially when you factor in the bump in insurance costs.

 

The biggest issue I have is the relative unavailability of basic builds in the new model. Why should a basic build be a "unicorn"? Toyota's engineering is superb, but the allocation process and the mafia-like distribution system are second rate.

 

Adjusted for inflation the richest people ever in America lived 100-150 years ago Rockefeller, Carnegie, Vanderbilt etc.
So we can't blame the wealthy today for the problems we have.

Plus who put the super rich where they are today? We did for the most part.
Musk, people buy Tesla's and Tesla stock. Space X builds rockets and gets government contracts because Nasa can't deliver.
Bezos, started Amazon with $300K. Almost everyone orders from Amazon. People have other choices but they choose Amazon quite often.
Buffet, started with $100K made all being smart in investing. Nothing stopping anyone of us from doing similar.

 

Oh I'm happy as a clam that there are gazillionaires here, more power.... but it would be nice to see them pay more in taxes.

I'd like to make $164,000 a minute 24/7/365... heck even at 80% tax I'd be still have more than I could spend.
I'd buy you a new truck just to fill my day....

 

I’m not one for the 'eat the rich' mentality, but the wealth disparity is growing, and the middle class is being squeezed. Large corporations use lobbying to accumulate even more wealth, while CEOs rake in massive bonuses. Trickle-down economics has only made things worse, with money being hoarded at the top rather than benefiting those lower down.

The issue is that, adjusted for inflation, the money just isn't reaching everyday people like it used to, for a variety of reasons. I think you over focused the "six people own all the wealth" part.

 

I won't argue that maybe the top Federal tax brackets ($500K+) should be raised couple points. But not to 50% for sure as some would suggest.
I won't argue that some top executives make way too much compared to there Blue collar workers.
What I do know is that the top 25% pay 70% of all Federal tax. While the bottom 25% pay less than 5%.

 

Well said.

 

One thing I will say . I really enjoy my truck , but in reality to go and buy a new one is nice …but at the same time if I think practically I really don’t need that new shiny thing . What would really change?
They both will get me where I need to go . Yes the new one like I said is really nice and pretty. Until some idiot runs a push cart into it . Sometimes I catch myself wanting to pull the trigger on that shiny new thing , and I hold myself back . Having no car payment at all is truly nice .

 

The best time to buy a new car is when you don't need one. This allows you to think, sleep on it, shop around,
gather info, test drive at leisure.

My daughter has been entertaining thoughts on a new car. She's always driven junkers. Well she blew a head gasket and
the brakes are shot and other items. She's looking at $1,800+ in repairs now and how much more down the road. So we
looked and shopped around and considered the good-the-bad-and-the-ugly and decided a brand new car for a few dollars
more over a used car was the way to go.

Just bought a 2025 Crosstrek with Option Package 14 ( nice stuff!!! ) for a great price. I sent a check Fed-x for $20,000 to the
dealer she is kicking in several thousand and her payments will be around $270 for her for 48 months. She sold some stock
and will kick-back some $10,000 to me. Nice to know she'll have a good vehicle for 7-8-10 years at pre-tariff prices. I was happy
to do it and as soon as an 'estate' settles I'm gonna buy one for my son. Unless of course my body decides to mingle with the stars
then he'll be driving a sweet 2021 A/Cab that's paid for.

These new vehicles are very expensive - getting one paid off and keeping it for years ( well maintained ) is the way to go.

 

$41.5 new for my TRDOR. I just can't justify a new 2025 at this point. I truly love my truck and if anything I'd gift it to one of my kids and then buy new.

 

My son is hoping for my early demise so he can sit in the drivers seat of my 2021.