AIER Cost of Living Calculator, 1913 - Present

[Sandpiper]

The American Institute of Economic Research has been keeping data for every year since 1913. So, if you want to see if your real wages have kept pace with inflation, or you're just curious about how far five dollars went during WWI, follow the link below.

http://www.aier.org/colcalc.html

[whistle]

1. Thanks, when I graduated from college in 1970, my first job paid...

...$13,500 annually, which according to the calculator is the equivalent of $64,750 today. Up to 2000 I had kept pretty much ahead of inflation throughout my first 30 years of working. But since Bush took office my wages have been cut by nearly 40%. Here is an article I was reading earlier this morning on what seems to be ahead for the economy and inflation.

Subject: More on inflation, if CPI jumps .6 percent in a month...
Message:
...that means 7.2% annualized. That's sure to bring immediate action by the fed on interest rates. Looks like oil prices are behind that surge according to this article that just came out a few hours ago.

Surging oil prices pump up US inflation
By Christopher Swann in Washington and Jennifer Hughes in New York
Published: June 15 2004 14:06 | Last Updated: June 15 2004 14:06


Surging gasoline prices contributed to a faster than expected rise in US inflation last month. The consumer price index rose by 0.6 per cent compared to expectations of 0.4 per cent.

But the more closely watched core measure of inflation, which excludes volatile foods and energy prices, rose by 0.2 per cent, less than expected.

Economy.com, the consultancy, said the figures may ease concerns that core inflation was accelerating beyond the control of the Federal Reserve.

The recent acceleration in the rate of inflation has taken both private sector economists and the Fed by surprise. Some in the market have accused the Fed of waiting too long before addressing early signs of stronger inflation.

Financial markets are braced for an interest rate rise at the end of this month following a string of robust employment reports coupled with an end to dis inflationary fears.

In recent weeks, the rhetoric of the Fed has become markedly more hawkish. Last week, Alan Greenspan, the Fed chairman, warned that interest rates may need to rise faster than expected if inflation continued to surprise on the upside.

Mr Greenspan, who on Tuesday seeks Senate approval for a fifth term as Fed chairman, gave no hint on interest rates in his opening remarks at the Senate banking committee. He said only that the Fed had to be ready to respond to anything that threatened US economic growth.

In prepared remarks, Mr Greenspan underlined his concerns over the possible impact on the economy of the "fortunately low, but still deeply disturbing" possibility of another significant terrorist attack in the US.

Meanwhile, US markets appeared reassured by Tuesday's inflation figures. Treasury prices jumped and yields fell as investors eased previously rising expectations that the Fed could raise interest rates by as much as 50 basis points at its end-June meeting.

The yield on the interest-rate sensitive two-year note tumbled 11 basis points to 1.82 per cent after reaching a two-year high of 2.94 per cent on Monday.

[JHB]

2. And to have REAL fun, combine this with...

The historical tax stats at the Tax Policy center website:

Tax bracket tables:
http://taxpolicycenter.org/TaxFacts/tfdb/TFTemplate.cfm?topic2id=30

Personal deductions:
http://taxpolicycenter.org/TaxFacts/Tfdb/TFTemplate.cfm?DocID=169&Topic2id=30&Topic3id=34

Compare your income taxes now (and other peoples!) with what they used to be at equivalent incomes.