A $60,000 house in the 70's is now worth $900,000 in CA. What is the buying power of our $$$ since the 70's?

Question

and why are the Republicans fighting to keep the minimum wage down?

Answer 1

You've got at least 3 questions in there.

Go here to compare buying power based on the consumer price index and click on the inflation calculator. Bear in mind the 1970's were very inflationary.
http://www.bls.gov/cpi/

$1 in 1970->today = $5.22
$1 in 1975->today = $3.76
$1 in 1980->today = $2.46

This chart shows the minimum wage over time.
http://www.dol.gov/esa/minwage/chart.htm

1970 = $1.60 -> buying power of $8.35 today
1975 = $2.00 -> buying power of $7.52 today
1980 = $3.10 -> buying power of $7.62 today

Today = $5.15

So yes, the buying power of minimum wage earners today is substantially lower than it was in the 1970's. There did appear to be determined policy at the time to keep minimum wage reasonably in-step with increases in consumer prices.

Why don't Republicans want to raise it? Because that would lower the profits of their best political donors.

The price of a house in California is kind of off the subject - you've got a scarce commodity (land) - plus prop 13 which kept property taxes down and a booming California economy. Also interest rates are dramatically lower now than they were in the 1970's.

Answer 2

well... the real estate market is ridiculous... so much so that I think it's hurting our economy... those coming into the housing market for the first time almost have to get in over their heads to even get a small house...

I think it could be in for a HUGE correction, like 10 times the size of the little bump that has been going on...

same things going on in health care...

but, inflation has increased more than the average persons wages over that same period in time... but not as much as the housing market has increased though...

while I can understand a need to keep the minimum wage low, there is a point where it does need to be raised... and I think we're at that point...

Answer 3

.......and 10% MORE of the population owns its own home, and houses are twice as big on average.... I.e., that's GOOD news.

Republicans are fighting to keep minimum wage down because minimum wage is a PRICE FLOOR. Cutting off the bottom rung of the ladder doesn't bump people up to the next rung - it just knocks them off the ladder entirely. This is why France and Germany, which have much higher minimum compensation requirements, consistently have twice our rate of unemployment.

Answer 4

a house in the 70's went for $70000 in arlington...now some are worth more than 2 million. do you really think raising the minimum wage is going to allow you to afford such a home? what, in your opinion should the minimum wage be? $50000/year? you still won't be able to afford such a home. if you set your goals at a "minimum", you will never buy that house!

Answer 5

The buying power per dollar is much less now.

There are many reasons why the republicans are fighting to keep minimum wage low, most are evil reasons and most of their stated reasons for being against raising it are lies about what it will cause.

Answer 6

Property value does not follow the dollar. They don't make land anymore so it is at a premium,even more so in California. If you don't believe it is worth that much don't buy it.