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Comment by yummyfajitas | Hacker News Reader

And yet, people consume more healthcare, education, and live in bigger homes than ever before (as measured by consumption statistics). So that clearly can't be the issue.

I think this paper hits on a bigger issue: http://www.ddorn.net/papers/Autor-Dorn-Hanson-MarriageMarket...

As men's employment opportunities drop relative to women's, their value in the sexual and marriage markets drop significantly. And women's employment opportunities have done nothing but rise. Female hypergamy is probably the real issue here.

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>>And yet, people consume more healthcare, education, and live in bigger homes than ever before (as measured by consumption statistics). So that clearly can't be the issue.

Of course it can. Ever heard of debt?

Debt is not magic. Somebody or something has to build the houses, provide the healthcare and education.

Yes. In the case of debt, that somebody or something is being financed by the future.

What does this mean? Someone builds a house and has their livelihood provided for while they do it. Once the house exists, it can be used for shelter. Money is imaginary. What is "financed by the future" and what does it mean?

It means that money is worthless unless it can eventually be converted into goods and services that you want. Debt means "money now, goods and services in the future". But what happens when you arrive in the future - as inevitably you will - and those things aren't there?

Student loans. That's what "financed by the future" means.

It kind-of is magic - that is how money gets created.

> Ever heard of debt?

I lold. Shouldn't there be corresponding data on debt then? National individual debt rising in relation?

Without data on hand, though, I do believe that has been the case

We have plenty of data. Take a look at this: http://www.slate.com/articles/business/the_united_states_of_...

What about rising household net worth?:

https://fred.stlouisfed.org/series/TNWBSHNO

That's mostly housing, which was financed by debt.

People are spending more on healthcare, education, and housing, but they aren't getting more; rather, the prices on these things have gone way up.

Incorrect. See the AIC (Actual Individual Consumption) source cited here:

https://randomcriticalanalysis.wordpress.com/2016/09/25/high...

AIC - measured in PPP and inflation adjusted terms - has risen in the US and Europe.

It's not hypergamy, it's paper money.

The realty and education bubbles are inflated by cheap credit. The cheap credit in the US exists mostly because Federal Reserve can print more money, and the whole world will buy. "There is a huge demand for $100 bills worldwide." If not dollars, US government papers ate considered safe, no matter the amount printed.

This is also makes US labor unable to become cheaper and compete with the places where it currently escapes. Hence some of the problems with dad jobs.

Maybe that is the case for some, but I think your argument misses a large percentage of the workforce, which is, the part that is already married and / or has kids.

As a side note...

While the housing stock is on average larger is is also significantly older than it was 30 years ago.

New houses are built to what I consider exorbitant prices. People finance 4x annual income or more.

The thing being sold is really the debt instrument, not the house itself.

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