There is one advantage to being old. We, old farts, have been around long enough to have seen a lot. We can put things in perspective, because at some time in our life, we’ve probably been there, done that, and might even still have the commemorative t-shirt hanging in the back of our closet.
In 1626, a group of Native Americans sold Manhattan Island to the Dutch for approximately $24 in trinkets and jewelry. If they put that money in the bank and got an annual interest of 6.5% on their money, today that would amount to $1.8 trillion.
Ten years ago, it was estimated that the entire amount of the developable land on Manhattan Island was actually worth approximately $1.74 trillion. So, the Native Americans weren’t outsmarted, like we’ve been taught to believe. It was a fair deal for both sides. Well, it might have been a better deal for the natives, though, since they had no actual deed to the land they sold. It was like that line in Crocodile Dundy, The Aboriginal people believe that arguing over who owns the land, is like two fleas arguing over who owns the dog.
Many people today are wondering when prices will come down. I hate to be the one to break the news to you, but the answer is, Never! Prices only go up. Real Estate values fluctuate, but, over the long haul, Real Estate has been going up approximately 6.5% a year since 1626. So, to keep pace, everything else winds up going up in price, too. That’s what inflation is. There may be a sale on some items occasionally, but over the years the price always goes up, unless the demand for an item goes down. I don’t imagine that the cost of buggy whips has risen as steeply as housing.
Real estate is the main driver of inflation. We all need someplace to live. We also all need food.
When I was a kid, my mom would tuck a one-dollar bill in my mitten and send me to the store for 3 quarts of milk and a loaf of bread. A Mom today would have to put a $20 bill in their child’s mitten to get that same grocery order, and she shouldn’t expect to get more than a few dollars back in change, either.
Workers get pay raises but companies insure their own profitability by raising their prices to cover the higher salaries and the higher cost of supplies, and maybe they even give themselves a big bonus for being so smart. It’s a vicious cycle that has been going on for centuries, and it isn’t going to stop no matter who’s in the White House.
Ten dollars doesn’t buy what it used to, but then again, 50 years ago the minimum wage was $2/hour, and it could take you 5 hours just to earn $10.
Are you better off than you were four years ago? That’s a trick question you hear very often during an election year. You nostalgically remember that four years ago everything was cheaper. You conveniently forget that wages were lower, and worse yet, wages have not been keeping up with the rate of inflation. So, in terms of spending money, you’re probably worse off. Companies have switched from honoring employees to honoring shareholders of their stock. Since the top executives at most companies often own stock in the company, they are far better off today than they were back then, while most of the employees are not.
The problem is not the rising prices. They’ve been going up in this country for 400 years and will continue to rise forever. The problem is that wages are not keeping up with rising prices. When you get a raise, you’re supposed to be able to get ahead, not just get caught up. You’re not getting the raises you deserve because, like I said, companies care about their shareholders far more than they care about their employees. To move our economy forward, we need workers to have more clout, and unionizing is how we can do that. Union Membership is down to only 6%. In the 50’s it was 35%. That’s what made those “good old days” so good. Rising wages for union members resulted in rising wages throughout the industries. A rising tide lifts all boats. That was a great time, but union membership declined, and workers lost their clout. Now, guys like Elon Musk and Donald Trump openly joke on “X” about firing employees who want to join a union. I don’t think that they know or even care that this is illegal. They just know that non-union employees are far easier to bully.
You’re never gonna lower the cost of living, but you can demand a living wage by joining a Union. Together we are very strong.
Peace & Love, and all of the above,
Earl
earlthepearl137 