I get a daily investment subsciption email thingy...very interesting and non conformist views on various stuff. One thing I found VERY interesting in yesterdays email was "mr and mrs average have not had a real payrise since 1972".
This was in relation to mr and mrs average and their propensity to believe they are 'wealthier' now because their houses have appreciated so much on the back of, among other things, various central banks printing money at a vast rate and various commercial banks lending it out at a vast rate...two of the main factors in the coming housing meltdown...worldwide.
This is something I already knew...you only have to look at what 1 years wages bought in 1970 and compare it to what one years wages buys now to see mr and mrs average have been going backwards at a startling rate.
This is all thanks to Govts (
all of them) in that time conspiring to cover up the real rates of inflation by only quoting 'the underlaying inflation rate' which is calculated from a basket of goods which doesn't include the biggest drains on net income...transport, food and house ownership....among other things.
As a result real wages having been going backwards at a rate of probably 5% for 30+ years.
Interesting that a house my father bought as a QF FO in 1970 for the equivalent of 1 years wages is now 'worth' 2/3rd of GD's last bonus....and about 22 years of a QF FO's wages.
Think about that!!!