A sad, but all too familiar tale of how things have deteriorated. 1913 was certainly a calamitous year in the US, with the introduction of both the Income Tax and the Federal /Reserve, the two things which have debased the dollar for over a century
Productivity gains seem to parallel this loss of wealth. Because of the debt trap, industry is always looking to produce more for less, We are much less wealthy but it is temporarily hidden by slave wages and robotics.
That makes sense, Matt. Just remember that the end game for acquiring wealth and power is "assets." The "money game" is a means to shift ownership of assets. Manipulating money (changing the rules of a made-up game) is the most effective and convenient method of advancing the game. Wealth and power concentrate, by design. That's the fundamental problem. Money is a tool.
This is a very interesting comparison. The comparison is based on the historical and present prices of gold. To determine whether the $3000 annual salary in 1910 would be equivalent to $450,000 today, I think one would have to look at the comparative buying power of each amount. Could a dollar in 1910 buy what one hundred fifty dollars could today? I would hazard a guess, the 1910 dollar would conservatively buy what fifty would today; in which case a tax-free $150,000 ($3000 X $150) would indeed be a pretty decent salary for a junior engineer, and if your ~$80,000 is correct, then it would be almost twice as much as today; and tax-free. There is the hazard pay factor I suppose, so if the canal were being built today, even junior engineers might get more than the $80K. But if a 1910 buck would buy what 150 would today, well then you would be right on the money :)
Great write-up. Same goes in 1914 when Ford upped the pay to $5/day for factory workers. Imagine earning an ounce of gold every 4 days. At today’s prices, $3400+/- each week.
Something has gone terribly wrong.
I bet if I calculated it out, I have lost 50% of my pay since 2000 in inflation adjusted terms. I’m in engineering and my pay really hasn’t increased much in that time so there is that too.
Now I feel lucky being able to buy a silver eagle each week.
Fascinating! I’m Harrison, an ex fine dining industry line cook. My stack "The Secret Ingredient" adapts hit restaurant recipes (mostly NYC and L.A.) for easy home cooking.
The American middle class, which is the 60% of Americans in the middle quintiles, earned about 60% of annual income per year up until the 1960s when it started changing. It is now about 26%. We are losing our middle class and it’s ironic that Trump is negotiating our shopping ability as part of his tariff deal making. Who’s going to buy since we keep whittling away at the middle class?
Also ironic, if we add a one percent wealth tax to the top 5% earners in any year, we will eliminate the deficit and stabilize government spending for Social Security, Medicaid, Medicare, and other programs. If it were just 2%, we could begin rebuilding the middle class and paying down the debt. If we are truly good capitalists who understand that the nature of capitalism is to concentrate wealth, this economic rebalancing would make sense to us, and we would act on it.
Hi Appreciate your article. I am not a specialist of currency’s value or a financial guy, but the above article in my opinion would provide more value, if the other side of a man’s budget namely the living costs would be included: E.g. transportation. A Ford Model T was worth 13 oz of gold in 1908. Just a thought.
Wonder what a comparison with say, the building of the Boulder Dam, the Alaska oil pipeline. Or the ‘wall’ along the southern border would show? Some homework for you? All the best.
A sad, but all too familiar tale of how things have deteriorated. 1913 was certainly a calamitous year in the US, with the introduction of both the Income Tax and the Federal /Reserve, the two things which have debased the dollar for over a century
Superb Follow-up article!!!!
Kudos & Respect.
✊
No need for the apostrophe in the title.
Productivity gains seem to parallel this loss of wealth. Because of the debt trap, industry is always looking to produce more for less, We are much less wealthy but it is temporarily hidden by slave wages and robotics.
That makes sense, Matt. Just remember that the end game for acquiring wealth and power is "assets." The "money game" is a means to shift ownership of assets. Manipulating money (changing the rules of a made-up game) is the most effective and convenient method of advancing the game. Wealth and power concentrate, by design. That's the fundamental problem. Money is a tool.
This is a very interesting comparison. The comparison is based on the historical and present prices of gold. To determine whether the $3000 annual salary in 1910 would be equivalent to $450,000 today, I think one would have to look at the comparative buying power of each amount. Could a dollar in 1910 buy what one hundred fifty dollars could today? I would hazard a guess, the 1910 dollar would conservatively buy what fifty would today; in which case a tax-free $150,000 ($3000 X $150) would indeed be a pretty decent salary for a junior engineer, and if your ~$80,000 is correct, then it would be almost twice as much as today; and tax-free. There is the hazard pay factor I suppose, so if the canal were being built today, even junior engineers might get more than the $80K. But if a 1910 buck would buy what 150 would today, well then you would be right on the money :)
Great write-up. Same goes in 1914 when Ford upped the pay to $5/day for factory workers. Imagine earning an ounce of gold every 4 days. At today’s prices, $3400+/- each week.
Something has gone terribly wrong.
I bet if I calculated it out, I have lost 50% of my pay since 2000 in inflation adjusted terms. I’m in engineering and my pay really hasn’t increased much in that time so there is that too.
Now I feel lucky being able to buy a silver eagle each week.
Fascinating! I’m Harrison, an ex fine dining industry line cook. My stack "The Secret Ingredient" adapts hit restaurant recipes (mostly NYC and L.A.) for easy home cooking.
check us out:
https://thesecretingredient.substack.com
The American middle class, which is the 60% of Americans in the middle quintiles, earned about 60% of annual income per year up until the 1960s when it started changing. It is now about 26%. We are losing our middle class and it’s ironic that Trump is negotiating our shopping ability as part of his tariff deal making. Who’s going to buy since we keep whittling away at the middle class?
Also ironic, if we add a one percent wealth tax to the top 5% earners in any year, we will eliminate the deficit and stabilize government spending for Social Security, Medicaid, Medicare, and other programs. If it were just 2%, we could begin rebuilding the middle class and paying down the debt. If we are truly good capitalists who understand that the nature of capitalism is to concentrate wealth, this economic rebalancing would make sense to us, and we would act on it.
Nice write up
Great article, thanks
Hi Appreciate your article. I am not a specialist of currency’s value or a financial guy, but the above article in my opinion would provide more value, if the other side of a man’s budget namely the living costs would be included: E.g. transportation. A Ford Model T was worth 13 oz of gold in 1908. Just a thought.
Excellent analysis. I shared it .
Wow. SHOCKING!!! Thanks for the interesting read...
Matt, Great read, thanks.
Wonder what a comparison with say, the building of the Boulder Dam, the Alaska oil pipeline. Or the ‘wall’ along the southern border would show? Some homework for you? All the best.
Well written, Matt. It was a very sobering read and really put into perspective how little people make these days in real terms.
I agree with Brian. Thanks Matt