Re:Gen Z have 86% less purchasing power compared to baby boo...
by Spooky23 on Monday August 15, 2022 @07:24PM
(#32476916)
Midpoint of a 20 year war. Inflation, combined with the financial engineering of the 90s and the deflationary power of the internet.
My parents bought a house when I was born in NYC in the 70s for $20k, sold it for 10x more in 1990 and that buyer sold it for 10x more circa 2007.
The deflationary power of the internet powered costs for business. My employer has 1/3 the accountants they had 30 years ago, but 5x as many IT people. Specific occupations make more money, but most make less due to dropped demand. On the production side, you can pretty trivially source goods from a anywhere on the planet. Again, reducing cost.
But the hard assets go up. Housing, food, durable goods. The average white good like a fridge costs 50% more and last 50% less time.
My parents bought a house when I was born in NYC in the 70s for $20k, sold it for 10x more in 1990 and that buyer sold it for 10x more circa 2007.
The deflationary power of the internet powered costs for business. My employer has 1/3 the accountants they had 30 years ago, but 5x as many IT people. Specific occupations make more money, but most make less due to dropped demand. On the production side, you can pretty trivially source goods from a anywhere on the planet. Again, reducing cost.
But the hard assets go up. Housing, food, durable goods. The average white good like a fridge costs 50% more and last 50% less time.