> Tyler Cowen points out that there's not a single thing in your list of kitchen appliances that didn't exist in the 50s. People have highly temporally displaced notions, believing that things like washing machines or dishwashers are recent mass consumer items but they're not, they're nearly a century old.
Economists know that GDP measures are skewed by the fact that “a car is not a car” — that is, a new car today is much more than a new car from 30 years ago. It is safer and more comfortable, and consumers who pay the same amount in real dollars for a new car today are better off than consumers who bought a new car in years past.
So the “house” from the Sears catalog isn’t likely comparable to a house today with the same number of rooms. For example, the size of bedrooms, bathrooms, kitchens, closets, and garages has increased greatly in the last 100 years. New homes are more energy efficient and have safer wiring. Does this close the gap with a $32k house? Not in Silicon Valley, but there are parts of the country where the house (excluding the land, which Sears didn’t include either) is worth around $50k.
Economists know that GDP measures are skewed by the fact that “a car is not a car” — that is, a new car today is much more than a new car from 30 years ago. It is safer and more comfortable, and consumers who pay the same amount in real dollars for a new car today are better off than consumers who bought a new car in years past.
So the “house” from the Sears catalog isn’t likely comparable to a house today with the same number of rooms. For example, the size of bedrooms, bathrooms, kitchens, closets, and garages has increased greatly in the last 100 years. New homes are more energy efficient and have safer wiring. Does this close the gap with a $32k house? Not in Silicon Valley, but there are parts of the country where the house (excluding the land, which Sears didn’t include either) is worth around $50k.