Sunday, January 23, 2022

Inflation isn't mostly food now

12 month increase as of December 2021:

Used vehicles up 37.3%

Gasoline up          49.6%

Clothes up               5.8%

Food up                   6.3%


So, the really devastating problem is not around food but rather Vehicles both new and used and Gasoline.

So, though food we are going to notice the most because everyone is going to have to eat to stay alive, the real problem now which is causing food prices to rise so much is Gasoline to haul the food to you which is up 49.6%. This is a really big factor in how much your food costs in people just trying to get it to you from farms wherever they are around the world.

I was thinking recently about the 1970s where in 1969 gasoline was as cheap as 17 cents a gallon for regular in a Mohawk Station in San Pedro California when I was college age.

However, then between 1969 and 1980 it went to 1 dollar a gallon which meant that gasoline increased 5 times in around 10 years time.

This was really bad for the average person and then cars became much more expensive too without wages going up as well.

So, the country relatively speaking became much poorer in what they could do and what they could buy from 1969 to 1980 for the average person then.

Minimum wage in 1969 was:

$1.30
The minimum wage went to $1.00 an hour effective February 1967 for newly covered nonfarm workers, $1.15 in February 1968, $1.30 in February 1969, $1.45 in February 1970, and $1.60 in February 1971. Increases for newly subject farm workers stopped at $1.30.

History of Changes to the Minimum Wage Law - US ...

Minimum wage in 1980 was:

$3.10
Minimum hourly wage of workers in jobs first covered by
Effective Date1938 Act 1
Jan 1, 1980$3.10 for all covered, nonexempt workers
Jan 1, 1981$3.35 for all covered, nonexempt workers
Apr 1, 1990 4$3.80 for all covered, nonexempt workers
Apr 1, 1991$4.25 for all covered, nonexempt workers
25 more rows

History of Federal Minimum Wage Rates Under the Fair Labor

So, as you can see if the price of Gas went up over 5 times in price and the minimum wage went up only  from $1.30 to $3.10 per hour that the average person actually lost ground financially in regard to both Gas and food and whatever it costs to haul whatever they needed to buy for them from wherever it was made. 

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