Back during the days that fool Alan Greenspan was chairman of the Federal Reserve, the Mr. Magoo who could not see the biggest credit bubble in the history of mankind right in front of his eyes, Greenspan would claim that inflation did not exist because product quality improved so much more than yesteryears (see: THE BUBBLE ALAN GREENSPAN COULDN'T SEE WITH ROUTINE DATA COLLECTED BY HIS ONE-TIME EMPLOYER, THE FEDERAL RESERVE).
Greenspan would point to things like ABS brakes and air bags to how people were getting more for less, supposedly. His moronic successor, the egghead academic Ben Bernanke would parrot the idiocy of Greenspan.
The average wage rate in 1960 was $2.32 an hour. A 15¢ McDonalds hamburger in 1960 was 6.5% of a worker's wages, on average.
Today, a McDonalds burger is priced $2.49. That is 10.7% of a worker's average wage rate today of $22.38 an hour. For a McDonalds hamburger to be priced proportionally, that burger would need to be priced at $1.51.
Anyone who has eaten a McDonalds burger from 1960 versus one today would tell that McDonalds of the 1960s sold much higher quality burgers.
So the quality has fallen through the floor but the price is higher today proportionally to a worker's wage.
There were a mere 228 McDonalds eateries in 1960 in the USA. In 2018, there were 13,905 USA-sited McDonalds eateries. So the total restaurant count has grown 5,999 per cent.
Today's McDonalds hamburger is priced roughly 1.7 times more than one in 1960. Looked at it another way, for the average wage US worker to have the same buying power as one in 1960, he or she would need to earn at a rate of $38.51 and hour.
So if computerization, just-in-time inventory, fuel efficiency and all of the other things that Greenspan claimed have made US workers more productive, why are wage rates lower today?
You can thank the horrible immigration policy of Congress since 1986, from the Reagan amnesty to the admittance of 2.62 million immigrants a year since 1960 through May 2019, which has suppressed the average wage rate and has reduced capitalism in the USA while increasing capitalism in China, India, Mexico, and elsewhere.
Americans lived much better from 1960 to 1970. Those were the heydays for working-class Americans.
For more on how immigration hurts capitalism, see my works:
- UNFETTERED IMMIGRATION IS KILLING AMERICAN CAPITALISM
- THE LABOR SHORTAGE MYTH IS PROPAGANDA USED AGAINST YOU AND IT IS ONE OF THE BIGGEST GAFFS OF ACADEMIC ECONOMISTS AND POLITICIANS
Oh and Mr. Amnesty Ronald Reagan was a bad and quite liberal president. Do you doubt this truth, then read my work: RED-PILLING YOU OVER LIBERAL RONALD REAGAN. FREE YOUR MIND.
You deserve a break from Congress.
Gab It
