By no means am I well versed in economics.
Here's what I know. Things cost money. In order to buy things, you must make money. In order to make money, you need to do some sort of job. Then, after you get your first paycheck, you realize the stuff you really want costs more money than you have.
So you want more money. So you work harder for more money. But things get more expensive, so the more money you make, the more money you spend on the same things that are increasing exponentially in price every single year, every single month.
Which brings me to Giant Eagle. Doesn't it seem like every item at Giant Eagle costs about $4.00. I know I'm being facetious, but maybe I'm not. To add to that thought, Why does a cart of groceries at
Giant Eagle cost about $300, but you can go down the street to
Marc's (or whatever your local cheap-o grocery mart is called) and get the exact same groceries, and more, for about $150?
But, I digress.
This past weekend I sat down with my Dad to discuss money, inflation and well, mo' money. Not
the movie, the idea.
But first a little history lesson. I grew up in Martins Ferry, Ohio, which is a small little town near Wheeling, W.Va. The economy started to go belly up when the steel industry went kaput in the early 80's. As the steel and coal money dried up, so did the once-prosperous towns and villages along the Ohio River. Although a beautiful area with lots of rolling hils and historic landmarks, the area hasn't really been the same since.
"Dad," I asked my Dad.
"How much were you making in the 80's."
My dad, who retired after 35 years as a delivery dude for United Parcel Service, gave me a number between $40,000 and $70,000. For that particular time, it was pretty decent money. In fact, I would consider my Dad's annual payload during the 80's above average for Belmont County.
We weren't starving, we could afford nice clothes, we could afford the latest video game systems (e.g. Colecovision, Atari 2600, Intellivision) and we could even afford a nice pair of $100 Air Jordans every time back-to-school season came around.
"So, you had two cars, two kids in school and a wife that was a homemaker, correct?" I continued.
My Dad nodded.
"You also had credit card payments, a mortgage, utility payments, gas to fill up both cars and cable bills, right?"
"We didn't have cable," he said.
"Oh, yeah, I almost forgot," I said, duly noting my faux paus.
"Well, despite all of these payments and a one-income family, did you ever have any money left over after you paid the bills?"
"Oh yeah," My dad exclaimed. Then he thought about this for a moment and said,
"We probably had an extra $100 to $200 to spare."
"Every month?" I asked.
"No," he said.
"Every week."
I did a spittake of beer, which sprayed all over my mortgage, my utitity bills, my car payments and my gas payments...and my dad.
My dad's story just goes to prove my point...a little bit.
Back in the 80's, and even possibly the early 90's, money went a long way. And 'by a long way' I mean you could pay for all of your bills and even have some scratch left over to do something fun - like say
going to the movies, or even heading out to
Cedar Point....WORRY FREE!
Nowadays, more or less, we're making the same amount of money that people made back in the 80's and early 90's. However, we're paying out much, much more to the government, the gas station man, the utility man and, sadly, the credit card man.
Okay, maybe we're making a teeny-tiny bit more. But, it doesn't make any difference. Show me a married couple with kids that's making $100,000 a year or less, and I'll show you a couple that's struggling to make ends meet.
Seriously. It's fucking expensive to live.
Check this out, according to the
U.S. Census Bureau’s annual report on Income, Poverty and Health Insurance Coverage in the United States, real median household income in 2010 was $49,445, a 2.3 percent drop from 2009. Since 2007, real median household income has dropped 6.4 percent.
Forty-nine thousand four hundred and forty-five dollars? That's about $4,120 a month. About $950 a week. AND THAT'S BEFORE TAXES!!!!!!
Let me be the first to say,
"That fucking sucks!"
I shared this newfound knowledge with my wife the other day. She took it in, thought about it for a couple minutes, than simply said
"That's terrible," she said.
"How would you live? How could you live?"
She's right. Obviously people are living. They're eating and scraping by. Some may even be living relatively comfortable by budgeting the money that comes in, and working a second job.
But, there are many families living below that median income as well, which is scary.
Gone are the days when the wife
(or husband) stays at home to raise the kids - all the while not making some sort of money (In-House Day Care perhaps?). It seems nowadays you need a two-person income to simply make ends meet in this high-inflation world.
And, speaking of inflation, if we're going
by this article in the New York Times, food and gasoline prices are continuously on the rise in the United States, it ain't going to get any easier to pay for these things.
And I'm not going to even talk about
peak oil or paying for my kids' college education or my
(shudder) 401K.
Those are three little jokes that I'll have to save for another entry.
I'm not sure why I decided to write about this topic. Maybe it's been on my mind for a couple weeks, a couple years, a couple decades. No matter how hard you try to get out of 'owing the man', the man keeps pushing you back down.
Well, gotta go.
How to Make it In America is on HBO.
It's time to get schooled.
