Economics and Prices

9 09 2009

economyWhen I was young which has been some time ago, prices were much, much lower on all goods, services AND salaries. Most people do not seem to realize that all economics is relevant.  In other words, as has been said, expenses always rise to meet income. This is always, always, true.

As example, when I first went to work, I earned $150. a month. But it cost $.10 to ride the bus, $.60 for my lunch, $5 for a pair of shoes, $15 for a nice dress, and $40 per month for an apartment. So money was relevant.

When I married, my husband made $45 per week. Those young people who were really setting the world on fire made $60 a week. We envied them that big salary. Then when my first child was born, the doctor’s bill was $120. Gasoline was $.30 a gallon and we rented a 3 room, all utilities paid apartment for $50 a month. And we lived on a very strict budget. Life was pretty good.

In my working days before I became a Mom, I worked for a firm of accountants who were considered to be above average in salary. Each one made $5000 per year! I was making $175 a month at that time. Several years later, my husband was making $10,000 a year and was considered to be in the upper echelon of salesmen. Can you imagine? Actually making $10,000 a year! It was mind boggling. But the guy across the street was working for the new computer type business and he was making a lot more than my husband. We had 2 cars by that time. Only those doing really well had 2 cars. My husband traveled all the time to make that $10,000 so I had to have a car in order to run my household. We were really living well!  House payment was $65 a month, water bill about $1.50.

Later on, when my husband was even more successful, he made the remark one day that he was actually worth $20 an hour. Now that is really mind boggling. Imagine being worth that much. What is this world coming to.

So what is it really coming to after all. The more salaries rise, the more expenses rise. Even though a person is making $100,000 a year now, his house is costing him twice that much, his car is half that, plus all the expenses that are truly mind boggling. $2.50 for a gallon of gas? Utility  costs $1000 a month?

We have all just learned to count a little higher, but we have changed nothing. Just  able to talk in bigger figures, but still the same old relationship between salary and expenses. So all economics is relevant. As my husband used to say, a pound’s a pound the world around. And it is whether it comes to economics or other issues. All is relevant. Nothing has changed. Only the sound of bigger figures has changed.

Expenses still rise to meet income. And always will. That’s just plain old everyday economics.