I don't think it's a coincidence a lot of problems are happening at the same time in the US.
2 door single row -> 4 door two rows
drum brakes -> anti-lock disc brakes
lap belts only -> shoulder belts with airbags,
normally aspirated V-8, no catalytic converter -> twin turbo v6 and dual catalytic converter
manual transmission -> 10 speed automatic
If you wanted to make a Ford F-100 today, without the modern safety, emissions, fuel efficiency, and comforts, you could probably do it for less than $17,000, which is what $2,000 adjusted for inflation is.
In America the personal vehicle is a necessity in the vast majority of the country, and it's relatively more expensive today. As are many other necessities.
(If you want we can quibble further and say a 17k used Rav 4 or Tacoma would be more reliable than a 1970 F-100 anyway blah blah blah blah the increased lifespan and availability of used cars causes new cars to have to go more upmarket blah blah blah... but the hedonic treadmill is also real and if you would've been living it up with a new car and a nice home with a 30min commute in the 70s, but today have a 10 year old car and an apartment with a 70min commute, you're not gonna feel good.)
you would've been living it up with a new car and a nice home with a 30min commute
And you be killed or paralyzed after a fender bender. Death rate per 100,000,000 miles dropped from 5 in 1970 to 1.4 in 2023.
Hell, we did it with computers. Let's figure out how to do it in more places.
Isn't that supposed to be the main job of the economy? Increase productivity? So that we all get more for less? Make the pie bigger, don't just make your own slice bigger?
If there's "no world" where all that can happen, most of the "taxes will hurt innovation, actually" arguments fall EXTREMELY hollow. Let's connect a few dots:
- Streets are in disrepair
- You can't afford the lifestyle you used to (by "choice")
- It's far harder for people, especially the young, to find a job (many end up hiding on disability and such that didn't exist much several decades ago in the first place)
- The wealthy have more money, and proportionally more money, than any time in the last century
Maybe instead of choosing the more expensive car we should start choosing to put some of that money to use repairing our basic infrastructure and trying to increase whole-society productive output instead of bottom-line ROI.
This reminds me the housing discussing - a part of the affordability problem is that houses have gotten much bigger. And have air conditioning. And have to comply with strict building codes. And have to be fire safe.
Which is a problem. I know a people who would be happy with a smaller house, but there just aren't enough on the market, and the scarcity of them leads to bidding wars that drive the price up. Meanwhile huge houses sit on the market for months, because no one can afford them.
Airbags were patented in the 1950s. Modern ABS in 1971. Fist electronic fuel injector in 1957. You could take the Formula 1 level technology of 1970, and with enough money, apply it to a pickup truck. It would be shockingly expensive - and not as good. T
hat's my point! You are getting so much more for your dollar today, even though prices have risen faster than inflation. You are getting a multi-million dollar truck for $50k.
You’re not, though, because that truck never did and never could exist. A modern F-150 isn’t a 70s F1 car made cheap by new tech. This isn’t something you can wave away with an argument equivalent to “we put 1000 research points in the tech tree.”
When the US economy was working well, products got better and cheaper over time. Tech and increased labor productivity drove that. Now, tech and labor productivity has continued to increase, yet consumer prices have far outpaced inflation.
Yes, it pretty much is. You have to consider technology in cars is moving on two seperate/distinct paths.
1: improving manufacturing processes, materials, quality, which is lowering prices over time. Megacasting aluminum car parts is an example.
2: Adding totally new complex parts and systems that cars didn't have. This is things like airbags, antilock breaks, infotainment system, catalytic converters. This adds to the total cost.
#2 is far outpacing #1, which is why prices of cars are going up faster than inflation, wages, etc.
I think part of why this is hard to believe is that people strongly believe in the concept that time is money. On the margins for decisions like hiring someone to mow your lawn, it is true. For large scale things, you often cannot accelerate processes no matter how much money you dump into it. A good example of this is how long it has taken China to industrialize.
To be clear also, you have to prove your point that #2 is outpacing #1. The fact that the price keeps going up is not proof as there are other explanations. The poor quality of domestic manufacturers and their bad business practices, for example.
There is if we are comparing 2026 to the 70s. Technology has increased productivity overall. If those gains were distributed more evenly, it is more likely that the cost of, say a car, would be similar to the same percentage of income.
This is only true because real income has barely budged since the 1970s.
If real income had tracked productivity during that time, we would have plenty. But it didn't. All the increases have been siphoned off to feed the ultra-wealthy, in a variety of ways.
This is not true. Real income has more than doubled since 1970.
https://fred.stlouisfed.org/graph/?g=o1gV
All the increases have been siphoned off to feed the ultra-wealthy
No, the productivity gains are eaten up by expensive items with low perceived value. You don't think about the $1000 catalytic converter in your car, or $5,000 set of airbags. You just think you are paying more to do the exact same drive to work that you could have done in a $2,000 1970s car. And that's true! Nonetheless, there is real added cost and value to the car.
My $15k used car with 100k miles on it is just as reliable, just as stylish, and sparks just as much joy in me as the new cars my grandparents could have bought in 1970.
Some amount of this issue must be marketing and propaganda making people buy massively over spec vehicles than their actual needs require. Most of these workers could get by with basically any car but get marketed and peer pressured in to spending $50,000 on the biggest one.
You can easily run into trucks in the $120,000-$150,000 range in the car lots now.
That's actually in the range of what contractors make today.
Some sources:
GLassdoor: 67k https://www.glassdoor.com/Salaries/contractor-salary-SRCH_KO...
Finturf: 75k https://finturf.com/blog/how-much-do-contractors-make/
BLS: 91k https://www.bls.gov/ooh/management/construction-managers.htm...
(AT is because Americans can't drive? Partially kidding, but due to the car dependency that requires everyone being able to drive)