According to a report developed and published by ConsumerAffairs, in the last 50 years, spanning from 1974 to 2024, the overall purchasing power of Americans has increased by 73.1%, from $28,278 to $48,960; However, this is not an absolute answer to whether Americans are richer than they were five decades ago, since it will not only depend on the generation you belong to, but also on how much inflation affects you.
During recent years, the cost of some essential or consumer goods such as housing has also increased, which is currently around $400,000 dollars, so acquiring your own property has become an unattainable dream for part of the population that even struggles with high rental prices.
According to Mariano Torras, director of the Department of Finance and Economics at the Robert B. Willumstad School of Business at Adelphi University in Garden City, New York, commented that "many current homeowners have benefited from decades of rising housing prices; meanwhile, renters face increasing costs and cannot accumulate much equity."
Medical care also increased; A current expense of up to $180,000 is estimated to cover this service, which is why in recent years a 17% reduction in medical expenses has been observed.
For its part, university tuition also increased to $35,911 dollars at private institutions. "For many students attending public four-year universities, working part-time is no longer enough to cover tuition and living expenses as it was several decades ago. College has become more expensive relative to what students can realistically earn while enrolled," Torras said.
Although purchasing power has increased, this does not mean that the average population is in good economic condition; This will depend on the factors surrounding each individual. A retiree with his own home is not the same as the young man who has just left university and lives rented; The latter may even feel left behind and with a lot of uncertainty about the future.
