My parents did not make amazing money. My dad worked full-time and my mom part-time. They were able to buy a house, have four kids, go on vacations, have a golf club membership, play in bowling league, go out with friends, get baby-sitters, etc. I have no idea how a middle income household would afford that today.
Are ISU fans at their wits end when it comes to supporting Iowa State?
- Thread starter cyclonemarc
- Start date
- Status
Things like housing were cheaper, they did not have a $200 phone bill a month or internet bill, household items lasted for years and did not need replaced every five or so years. Vehicles were much cheaper compared to today, and you could replace them every few years without costing you an arm and leg.
Medical insurance or even a trip to the hospital did not cost thousands each year and salaries adjusted for inflation were higher than what they are today.
The CPI is far from perfect measure. Hourly wage calculations are flawed at best too.2022 was rough when things peaked, but it’s been about 1.5+ years of wages outpacing prices.
Sentiment is a real thing, so it will probably have to continue for a while to make people feel “over” it, but the metrics have improved.
Despite being widely used as the core indicator of inflation, the CPI is far from perfect as a measure of either inflation or the cost of living. It has a number of inherent weaknesses, and as such, its accuracy has drawn increasing criticism.3
For example, during a period when energy costs rose by more than 50% and the prices of some of the most commonly purchased grocery items increased by nearly 30%, the CPI continued to show a very modest inflation rate.4
U.S. Bureau of Labor Statistics. "Impact of Commodity Price Movements on CPI Inflation," Pages 37 and 41.
In contrast, other indicators measuring the buying power of consumers showed a dramatic increase in the cost of living. Here, we take a look at some of the limitations of the CPI and why this controversy persists.
:max_bytes(150000):strip_icc()/shopping-cc0622537452400aa3806fce7f2d7999.jpeg)
Limitations of the Consumer Price Index (CPI)
Despite being followed so relentlessly, the Consumer Price Index (CPI) has its limitations and is an imperfect measure of inflation and the cost of living.
The CPI is far from perfect measure. Hourly wage calculations are flawed at best too.
Despite being widely used as the core indicator of inflation, the CPI is far from perfect as a measure of either inflation or the cost of living. It has a number of inherent weaknesses, and as such, its accuracy has drawn increasing criticism.3
For example, during a period when energy costs rose by more than 50% and the prices of some of the most commonly purchased grocery items increased by nearly 30%, the CPI continued to show a very modest inflation rate.4
U.S. Bureau of Labor Statistics. "Impact of Commodity Price Movements on CPI Inflation," Pages 37 and 41.
In contrast, other indicators measuring the buying power of consumers showed a dramatic increase in the cost of living. Here, we take a look at some of the limitations of the CPI and why this controversy persists.
Limitations of the Consumer Price Index (CPI)
Despite being followed so relentlessly, the Consumer Price Index (CPI) has its limitations and is an imperfect measure of inflation and the cost of living.www.investopedia.com
So what metrics do you use?
A lot of this is consumer choice in buying cheaper items at the expense of longevity.
The average refrigerator, for example, in 1980 cost $1000, or over $4,000 in today's dollars. The average refrigerator today costs $1500. There are more expensive models with higher quality construction, but they aren't bought as much. People are choosing to buy cheaper appliances and replace more often.
Also there's survivorship bias- everyone sees the ancient appliance still kicking today, but doesn't see the millions that broke down decades ago and were replaced.
In my case... my own. Because in reality those are what matter to me and my family, my income, costs and overall budget.
How much has my income increased. Less than 3% per year the last couple years and expecting about the same for the next year. My wife's significantly less than that.
How much have my costs increased. Some things more than others, insurance, close to doubled, groceries double, taxes at least 50%, car loan rate several percent, which adds a lot per month, cost to eat out, about double, (fast food much more than sit down, in many cases) costs to travel hotels etc just guessing about 30-50% increase, costs for things like toiletries, car repairs, household items etc have all seen significant increases over the sub 3% per year rate of the CPI.
Sure my investments are up, but its not like I am pulling out those capitol gains, I am taking some dividends to cover some increases in costs currently though. And it is very dependant on the stock and sector, as some are not doing very well. But thanks to a few bangers my portfolio looks pretty good. And I believe I am probably in the minority with my investments and my house paid off.
That doesnt mean what I have budgeted for things like season tickets, donations and entertainment, etc has not been significantly decreased because of the current cost of living. What I have for those things is not infinite and when costs for necessary items goes up, it pulls directly from the unnecessary budget.
The CPI has a lot of flaws of which have been covered a lot by many financial sites etc like the one I posted above. It just doesnt do a good job of showing actual real cost of living increases and least not comprehensively, it has a lot of limits to what it actually shows. In reality you probably have to look at several indexes, to get an actual comprehensive look at the overall picture.
Ultimately while inflation has stabilized in the recent few months, most consumers are still trying to adjust to the inflation over the last few years. Its not like any of the products we regularly purchase will ever reduce their prices or increase their sizes to recover for shrinkflation.
demoncore1031
Well-Known Member
4-5 years ago I was doing ok financially and could have afforded to fly up to Iowa to catch a game. Now, no way. I had to get a 2nd full time job and by the time I pay the bills and buy groceries, toiletries, gas, etc., I have nothing left. No person should work 100 hours a week and be broke. This country is a f**king joke.
I have not been to an ISU football game since 1994 and would absolutely love to attend one soon, but it's impossible.
Welcome to Cyclone Fanatic, where a thread about supporting our team turns into Economics 101!
Seriously though, you guys want to talk about bad investments? Baylor pays their players…
Seriously though, you guys want to talk about bad investments? Baylor pays their players…
Totally get the staying home thing. Honestly, I'm planning to go, but it's definitely a lot more work. Have to spend more money, either pay to park or park and walk a mile, deal with traffic, and get home later. At home, I could watch out on the deck, light up a fire, and have my own private bathroom and eat/drink cheaper.
A person could support a family of four on a packing plant wage. And more than a few instances, there was one wage earner in the family. Times have changed. We would always make the 100 mile trek to Ames once a year or twice a year. Speed limit 55. Simply amazing to look back. Very few people experienced generational wealth, that I knew. Generational wealth is now a huge factor.
I agree with much of what you said except for “ISU has virtually no chance”. ISU has its easiest and clearest path to the college football path it’s ever had. And that opportunity will continue well into the future.
Also disagree that people are getting tired of this era of college football. Ratings are WAY up over the last 2-3 years.
Thanks for posting!2022 was rough when things peaked, but it’s been about 1.5+ years of wages outpacing prices.
Sentiment is a real thing, so it will probably have to continue for a while to make people feel “over” it, but the metrics have improved.
Saved me the hassle!
The Great Recession was 15 years ago. Yet in this thread and the other thread I see multiple “this is the worst economy
In my lifetime!”. So that gets really old because some people really did lose
Everything during that time.
This is a “it FEELS really bad though” situation. And you ask and no one can say why they feel that way. Or they say Eggs are 2.49 they used to be 1.49!
You are correct. I did say at the end though that the money keeps rolling in, along with the viewership. So unfortunately nothing is going to change…. at least not for a while.
And yes, ISU actually does have a better chance now to make the playoffs than they ever had.. but the more they choose to prop up 2 conferences at the expense of the others…. the more people like me that are going to say “F this!!”.
I have been doing Cyclone sports for 50 years. Have been to over 100 games easily. Now I just want to go do other stadiums and watch other teams. Ill never miss a game on TV but I just don't find as much joy going to the Iowa State games. Kind of a been there and done that type deal. I am going to Arizona and Arizona State games down in Zona this year. That is the type of stuff I like to do now. I am also going to an LSU game down at Death Valley this season. Love my Cyclones but I am not donating to NIL, Tickets, Parking spots, and all of that stuff. It's just to expensive now.
Actually, I think a few people at least in here have given concise answers to why it is hard for some people.
- Status
