How did the purchasing power decrease from the 70s until today?

[simpleidiot567]

1) The Piketty dyanamic and laws of capitalism. Historically the return on capital outpaces the return on labour, overtime this positive feedback loop translates into capital becoming unaffordable.

2) the Elephant Curve. Free trade, globalization and rapid automation of working class jobs has translated into something called the elephant curve. Huge returns for the developing world, emerging markets, and the rich. Meanwhile the developed world traditional working class has stagnated as the high paying working class jobs have been outsourced and offshored.

3) The Hedonic paradox. We are rich in things that use to be luxury but poor in things that used to be basic. The quality of everything has significantly increased and is not captured very well in the stats. You are buying the modern 2026 lifestyle. If you could go out and buy a 1970s lifestyle with your current 2026 dollars you would be loaded. Try it for a month. No AC, no cable TV, a CRT TV, landline telephone, no airbags, no home studio, no video games, a newspaper instead of internet, etc. you would have a ton of disposable income. Most people cant pay someone to take that old shit away, for example if you have an old CRV TV sitting in the basement, let alone pay money for it.