According the Professor Steve Horowitz, the cost of living is actually going down. Workers can buy what they want with much less time worked now than in the 1970’s.
This is not a new concept. Actually, I found it in Mark Twain’s fiction book, “A Connecticut Yankee in King Author’s Court.” He compares the amount of work that a person needs to do in order to get the buying power of goods. This concept gets the main character in a lot of trouble in the novel. The people of the 6th Century are stuck on the amount of money that a person makes per day, not the buying power of that money. Of course, Mark Twain is really talking about the 19th Century, by means of an allegory, and we are now in the 21st. The same principles apply.
There are also technological advancements that make the products that we buy nowadays more valuable.
Give an example of a product that in fact the price in terms of time worked has gone down
Do the products that we can buy now give more value?
Do you feel that your income is keeping pace with the prices?
What factors do you take in account when buying a new large appliance?
Does this information about hours worked vs prices help you to make financial decisions?