The good old days: 1900, 1950 and today
RedTiger
Posts: 5,608 ✭
I found an interesting online from the Atlantic "How American Spends Money" (
link).
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The typical household haul in 1901 is about $750. (about 35 ounces of gold with gold fixed at $20) ...
Almost half of the country works in agriculture. ...
A quarter of households have running water. Even fewer own the home they lived in. Fewer still have flush toilets. One-twelfth of households have gas or electric lights, one-twentieth have telephones, one-in-ninety own a car, and nobody owns a television.
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Fast forward to 1950 (household income isn't given in the article, but I found the $2500 number in a search. With gold fixed at $35 an ounce that is about 71 ounces of gold. With the fixed gold price, that ratio likely peaked right when Nixon closed the gold window in 1972. Now to today and 2012, average household income is about $50,000 per household, taking $1600 as a round number and that is about 31 ounces of gold.
So in gold terms, the 1950s and 60s were the good old days. In gold ounce income terms, average Americans are now worse off than in 1900! Wow, no wonder so many people are in such a sour mood. Again, to keep it in perspective look at the running water and flush toilet stats from 1900 again. Also keep in mind life expectancy was in the 40s back then too (46 was average) vs. about 80 today.
link).
>>
The typical household haul in 1901 is about $750. (about 35 ounces of gold with gold fixed at $20) ...
Almost half of the country works in agriculture. ...
A quarter of households have running water. Even fewer own the home they lived in. Fewer still have flush toilets. One-twelfth of households have gas or electric lights, one-twentieth have telephones, one-in-ninety own a car, and nobody owns a television.
>>
Fast forward to 1950 (household income isn't given in the article, but I found the $2500 number in a search. With gold fixed at $35 an ounce that is about 71 ounces of gold. With the fixed gold price, that ratio likely peaked right when Nixon closed the gold window in 1972. Now to today and 2012, average household income is about $50,000 per household, taking $1600 as a round number and that is about 31 ounces of gold.
So in gold terms, the 1950s and 60s were the good old days. In gold ounce income terms, average Americans are now worse off than in 1900! Wow, no wonder so many people are in such a sour mood. Again, to keep it in perspective look at the running water and flush toilet stats from 1900 again. Also keep in mind life expectancy was in the 40s back then too (46 was average) vs. about 80 today.
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Comments
What did it say about toliets in the 1950's? My parents didn't have an inside toliet until the late 50's.
People living longer is gonna hurt this country in the long run. I'm glad people are living longer (and I hope to as well!), but it's gonna drain the system quickly.
Too many positive BST transactions with too many members to list.
From about 1975 until now - that period is more valid in terms of gauging the costs of things and relative incomes, in my opinion.
I knew it would happen.
<< <i>Since the price of gold was fixed from 1945 through 1971, I'm not so sure how much validity there is in comparing fluctuations in the price of anything compared to gold during that period. There was a 2-tiered price system for awhile, and I don't know that gold prices were really represented much of anything other than speculation until about 1975, which is about how long it took for the markets to decide that gold was free of major price control.
From about 1975 until now - that period is more valid in terms of gauging the costs of things and relative incomes, in my opinion. >>
You have a good point. However, I do find the numbers interesting. There are the often cited cliches about an ounce of gold buying a nice suit or a decent gun, no matter the time period. The Atlantic article also talks about 1950 as the peak of American manufacturing, in particular textiles (clothes). Back in 1900, the most common job was farmer, another common profession was household servant. Without running water, without penicillin, without a polio vacine, early deaths were common. A 60 hour work week at back breaking menial labor jobs made for short, hard lives, it wasn't just due to infant mortality. The article says that incomes have gone up 68-fold since 1900, but measured in ounces of gold is actually down from 37 to 31 ounces.
The wealthy back in 1900 even 1800 did often live to 70+, and going into the next century it may return to that kind of gap. The wealthy will have access to the wonders of expensive advanced technology and procedures, the masses not so much, which may mean a return to the kind of gap that existed back in 1900. In the future, the wealthy may live to 150, while the average person's life expectancy may stay around 80, or even trend down as more and more people have unhealthy habits.
/edit to add:
Another bit of trivia
In 1900 the retail price of a Steinway Model D piano was $1,400 (70 ounces at $20 per ounce) and ...
In 2010, the retail price of a Steinway Model D was $123,800 (76 ounces at $1600 per ounce)
from Steinway trivia
So really the gold value metrics aren't that far off even with 70 years of fixed pricing in the mix. Household incomes 1900 to 2012 are in the same ballpark in terms of ounces of gold (37 to 31), and the price of a very nice piano is in the same ballpark (70 to 76).
And I imagine in 100 years people will talk about all the inconviences we had in 2012.
Interesting research redtiger. It could be investigated further.
Knowledge is the enemy of fear
<< <i>I'll gladly trade all my gold for a flush toilet, instant hot water, transportation that doesn't fart, instant communication, and lightbulbs.
And I imagine in 100 years people will talk about all the inconviences we had in 2012.
Interesting research redtiger. It could be investigated further. >>
Not all cultures believe in a brighter future. Your trade reminds me of a saying in some oil rich countries:
My grandfather rode a camel. My father drove a car. I fly in a private jet. My grandchildren will ride camels.
Meaning once all the oil is gone, the money spent, probably squandered by spoiled rich kids, all that was built up will be washed away. It speaks as much to culture as economics.
But also having been in middle eastern countries and seeing how many people there still live like we did in 1900, I can understand the saying as a vast majority of the world only dreams of the conviences we take for granted. I'm
Knowledge is the enemy of fear
Maybe all that money is being used for something after all, not every cent can be being wasted, can it?
Liberty: Parent of Science & Industry
Long ago we decided that we wanted to make sure everyone had a living wage or security if they fell into poverty, contracted an illness or simply got old. We live in an entirely different country than we did before 1940. These support systems cost money. In 1900 there was no support systems. Better than today? A comparison is really meaningless.
Price of gold in 2001: around $270 per ounce.
2001 median income in ounces of gold: 156.
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