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iamnik77 (95.73)

Hyperinflation has been the American way of life but someone, somewhere doesn't want us to realize it.

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July 01, 2009 – Comments (6)

We hear much talk about hyperinflation these days but I contend that hyperinflation has been at work throughout my entire adult life from when I graduated high school in 1995 up to today. The cpi makes us think wages have stayed even with inflation but do we really think tracking the price of electronic gadgets has anything to do with the cost of living? The things that are a much higher priority than electronics such as housing, education, healthcare, and good jobs aren't reflected in the cpi. I start my first teaching job this summer as a high school math teacher and will earn roughly $34,000 a year. A modest starter home in my area goes for $100,000 so you could say the pay is low but so is the cost of living in the area. Using the conventional rule of doubling your mortgage payment to include insurance, utilities, and upkeep, do you feel my income will support home ownership? I say that home ownership combimed with the other typical expenses of life would leave me little to no money leftover. Could I both buy a home and hope to get ahead financially on my income? Those of you who are older, ask yourself if during your early years of working, a first year teacher could reasonably expect to be able to afford a small home and get ahead financially. I think this kind of comparison illustrates how much the purchasing power of a typical working American has declined over the last couple of decades.

6 Comments – Post Your Own

#1) On July 01, 2009 at 10:06 AM, chk999 (99.97) wrote:

This is nothing like hyperinflation. Hyperinflation is when the posted price of a meal rises while you are eating it.

In Germany during the hyperinflation it took billions of marks to mail a letter. They had to keep overprinting the stamps with new values to keep up. We up the price of a letter by a few pennies every year or so.

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#2) On July 01, 2009 at 10:11 AM, Entrepreneur58 (36.82) wrote:

"Those of you who are older, ask yourself if during your early years of working, a first year teacher could reasonably expect to be able to afford a small home and get ahead financially."

Holy Cow!  You think that people right out on their first real job should be able to afford to buy a house?  What planet are you living on?  When I was in my first job, you had to save up 20% for a DOWN PAYMENT on a house.  Who has that kind of money in their first year working?

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#3) On July 01, 2009 at 11:30 AM, jstegma (29.19) wrote:

It's not hyperinflation, but you have a very good point.

The cost of living has gone up a lot in terms of housing, food, energy, education, medical care, etc. 

You can't really make up for increases in the cost of the important things in life by saying that the price of a DVD player has declined by 90% in the past 10 years.  

 

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#4) On July 01, 2009 at 11:50 AM, pbn1937 (< 20) wrote:

I graduated H.S. in 1955, and could not have imagined your dream. Your generation has a distorted idea of what life has to offer you. The economic model that we have been using has fallen over the cliff. Ever increasing debt to finance a lifestyle is over. We shall have to learn the lessons of the 30's, and be frugal once again. The throw-away society is over. You will have to live in an apartment for several years and save up a down payment, waiting for your salary to increase with tenure. The USA has been financed by the rest of the world. We are not the only game in town anymore. I am sorry to break this news to you.

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#5) On July 01, 2009 at 11:53 AM, booyahh (< 20) wrote:

"Those of you who are older, ask yourself if during your early years of working, a first year teacher could reasonably expect to be able to afford a small home and get ahead financially."

No way, you're dreaming of a fictitious past. Thirty years ago nobody got mortgages right after starting their first middle-class job. Banks required downpayments of at least 15%-25%, and even with the down payment, they wanted proof that you had a stable income for the preceding few years. And btw, thirty years ago houses were smaller and less fancy.

But I do agree that health care and education costs have skyrocketed.

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#6) On July 01, 2009 at 1:45 PM, iamnik77 (95.73) wrote:

Thanks, everyone who replied. These were the type of answers I had hoped for. It seems out of control and escalating ideas of what our standard of living should be is as much a problem as inflation or stagnant wages. For those of you men who are older, when you dated, did the women expect you to have a $20,000 plus vehicle and be a homeowner in order to be worth any serious consideration?

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