Almost every online article about the economy and jobs seems to include at least one comment from somebody who thinks the whole problem is that people waste too much money on gadgets and toys. Let’s take the example of a large-screen HDTV that costs $1200.
I was listening to a 1954 radio show today, and it had an ad for GE TV’s, “starting at only $169.95.” According to the inflation calculator at the Bureau of Labor Statistics, that’s equivalent to $1400 today. My parents bought the family’s first color TV in 1967 for $450. That’s like spending $3000 today!
Now let’s look at houses. My parents bought their house in Massachusetts for $38,600 in 1968. Adjusted for inflation, that’s $245,000 today. The current Zillow estimate for the house is $527,000, and before the crash in ’08 it peaked at $615,000. I don’t think it’s money spent on toys that’s the biggest financial problem for most families.