Many find it hard to accept all the research showing that cost of living has - for the most part - declined since the 50’s-70’s. One reason why is likely linked to perception. There are many things that we - today - consider part of regular life that prior generations never paid for.
In short, there are more tv’s per household, more cars per household, internet bills, cable bills, cell phone bills, annual estimated expense of owning video game systems + games, annual estimated expenses of owning computers, etc. These things aren’t ACTUALLY “necessary” and did not exist the way they do today, or sometimes at all. We’ve added them to our perception of “the cost of living” because we enjoy these comforts, but that doesn’t mean it’s accurate to compare these expenses to living expenses of the 50’s, 60’s, and 70’s.
• CELL PHONE: $1480 Annually
“The average monthly cell phone bill has soared in recent years to well over $100. A study earlier this year found that Verizon (VZ) was the most expensive carrier, with an average customer bill of $148 a month. Sprint and AT&T weren’t that far behind, and T-Mobile was the least expensive of the Big Four carriers at $120.” Add to this the cost of actually BUYING the cell phone, which only applies under some plans, carriers, and devices, and therefore might only average around $40 a year, we can reasonably estimate an annual cell phone expense of about $1480. [a]
• TV’s: $1680 Annually
“In 2011, the average subscription for basic cable service and premium-TV channels in the U.S. reached $86 a month, and around $123 by 2015.” [b] The number of tv’s per household has also nearly doubled from “1.57 TV sets per household in 1975” to “2.93 TV sets per household by 2010.” [c] Therefore, including the expense of occasionally purchasing a second TV, cost of TV ownership can be estimated at about $140 a month over that of any pre-1970’s era.
• INTERNET: $780 Annually
Add in the $60-$65 average monthly price Americans paid for broadband access, according to research from Point Topic done in early 2014 [d], and the cost of occasionally buying new modems, and we can add another $780 a year.
• VIDEO GAME SYSTEM: $200 Annually
Additionally, it’s extremely common for those in the middle class and above to own a video game system. The estimated expense of owning a video game system, including cost of console, extra controller, and a dozen games over 8 years of ownership, is roughly $200 a year. [e]
• EXTRA VEHICLES: $6000 Annually
In 1969 each household owned an average of 1.16 vehicles. [f] In contrast, there were 255,876,820 registered vehicles in 2013 [g] and 115,610,216 households in 2013 [h], so the ratio increased to 2.21 vehicles per household. In other words, households generally own twice as many vehicles as we used to. And it’s not necessarily because we have twice as many workers per household. Average workers per household was 1.21 in 1969 but only increased to 1.35 by 2001. [f] This is a luxury that comes at extra expense. By 2013, the price of a new car was about $31,252 [i] The average lifespan of a vehicle is 8-10 years. [j] Therefore, if households hold onto their new vehicles for roughly 8 years, plus the added expense of repairs and upkeep, insurance, car tax, registration, and gas, we can reasonably assume an additional expense of ROUGHLY $6,000 a year, depending on cost of vehicle, amount of travel, and wear and tear, etc.
TOTAL ESTIMATED ADDITIONAL COST OF OUR ADDED LUXURIES: $10,140 A YEAR.
Now, while these are all rough estimates and can each be debated, the point remains the same; you are NOT living the same life that your father or grandfather did. Be mindful of that. Your grandfather likely did NOT support a family with 2-4 tv’s, 2 or more vehicles, 1-4 cell phones, Internet, cable, Netflix, video game systems, and computers. So if you truly want to test whether one can live on an average income as comfortably as people did decades ago, get rid of all those additional luxuries and TRULY test it. You may just save your household $10,140 a year. And under THAT scenario, all of a sudden, life wouldn’t feel so damn “unaffordable,” would it?
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Sources:
[a]
http://cbsn.ws/23FDYpJ
[b]
http://bit.ly/23FDYFW
[c]
http://bit.ly/23FDYFX
[d]
http://bit.ly/23FDYFZ
[e]
http://bit.ly/23FDW0T
[f]
http://1.usa.gov/23FDYG2
[g]
http://bit.ly/23FDW0X
[h]
http://1.usa.gov/23FDW0Y
[i]
http://usat.ly/23FDW11
[j]
http://nbcnews.to/23FDYG7While I agree that minimum wage should be higher I also agree with this. People in America prioritize entertainment and luxuries over eating well and other matters. Very frustrating.
I disagree that Internet access and a vehicle are “luxuries” in modern day society. The Internet is just as essential to communication today as a land line telephone was in the second half of the 20th century. And the reason our grandfathers didn’t have two vehicles is because our grandmothers’ “job” was to stay at home and raise the kids.
And I think it’s ridiculous of the OP to tell Millennials to live an Amish life rather than demand a living minimum wage that covers what we consider the standard trappings of 21st century life.
The UN declared that internet access was a human right almost 5 years ago. Also, considering that really is how the majority of us communicate nowadays, telling us to get rid of it is just downright stupid. That includes cell phones and tablets that can access the internet.
Also, entertainment is a necessary expense to a certain point. Without the ability to relax and unwind, be it through books, TV, movies, music/dancing, or video games, well, there’s a saying about all work and no play. There’s a real, measured impact of being unable to de-stress. It could lead to an early death. If not death, then maybe stroke, burnout, depression, more days spent sick, memory loss, chronic headaches… need I go on?
And even if I was still employed, I’d be making less than $15K/year after taxes at full-time pay, so yeah, I’d still be making less money than what it would take to live without those necessities you call “luxuries”. But I’m just a stupid millennial who wants his basic needs covered, so what do I know?
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Tagged: pictures, rants, The stupid. It burns.
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