Stupid World

[Oscar]

Again i ask you to show me the figures you used.
regardless of your thoughts of using one commodity as a yard stick Stephen did to which you replied he was wrong, so its is up to you to prove it using your figures.

Based on 8 cents a pint in 1976 and a median income of $95 a week, compared to the price of $1.12 and median income of $844 a week now.
Would you like to compare interest rates in 1976 and 2013?
The cost of meat (that could be interesting).

Using one commodity is silly.
Arguing about a comment that hardly makes sense as it's author was probably drunk makes no sense.

( on a pint of Milk ) from 1976 to now, your money has lost 90 of its purchasing power !!!

[husaberg]

Based on 8 cents a pint in 1976 and a median income of $95 a week, compared to the price of $1.12 and median income of $844 a week now.
Would you like to compare interest rates in 1976 and 2013?
The cost of meat (that could be interesting).

Using one commodity is silly.
Arguing about a comment that hardly makes sense as it's author was probably drunk makes no sense.

interesting use of figures mine come out different. I used al 1975 btw.
ave after tax NZ$98.97 a week.
4.05c per 600ml
x7/week=$0.2835
0.286%

2013
After tax =$871.87
2.42 litre .242c per ml or $1.45/600ml
x 7 /week=$10.15 per week.
1.16%


=4x less buying power. i will show where i leading with this later......
because the farm gate price has steadily fallen............
yet someone is making out quite well.......
Ice cream

The average price of a two-litre tub of ice cream in 2010 was around $5.40, compared with an average price of 85 cents in 1975 and $2.10 in 1981. Tubs of ice cream are priced at both supermarkets and convenience stores. The current average prices are $5.35 at supermarkets, where a range of brands is priced, and $6.50 at convenience stores, where the price of the cheapest available two-litre tub is collected. The average prices quoted are weighted averages of the selected items priced for the CPI, weighted by store-type expenditure and regional population estimates.

1970's Diet could we afford it now doubt it?
We remained a ‘meat and three veg’ people. Our appetite for beef increased from 45 kg per person in 1969 to 57 kg in 1977. Counting mutton and lamb as well, the average Kiwi scoffed nearly 90 kg of red meat each year. Potatoes (57 kg), carrots (8 kg), cabbages (5 kg) and cauliflower (4 kg) were the main vegetables eaten.

Milk – almost always full-cream – was delivered by the local ‘milkman’ in a glass bottle. In 1979 we each drank 188 litres of the stuff. The amount of cheese consumed almost doubled during the decade to 8 kg per person per year, in part because of the fad for fondues. We also spread 15 kg of full-fat butter on our sandwiches.



The housing market is far more perverse.

New Zealand experienced a very sharp rise in house prices and interest rates rose to almost 10%. This was followed by an explosive period of consumer price and wage inflation at the same time as flattish house prices in nominal terms.

We found the average pre-tax income in June 1975 was NZ$126.88 a week. After tax of 22% that left disposable income of NZ$98.97 a week. The average house price in 1975 was NZ$24,300. Assuming a 33% deposit on a 15 year mortgage and the 9.3% variable rate at the time meant an average wage earner had to make a mortgage payment of NZ$38 a week or about 39.2% of disposable income.

This relative unaffordability didn't last long because wage inflation combined with falling real house prices through the late 1970s and early 1980s reduced the portion of disposable income required to buy a house.

Back in 1987 - 18.4% 67% of income

There was also a housing boom back in 1987 as Alan Greenspan took the reins and cut global interest rates to prevent the 1987 stock market crash widening. Our stock market crashed anyway, but we did have a housing boom that lasted for another year or so.

At the same time our interest rates were sky-high to clamp down on inflation which had rampaged through the 1970s and 1980s. The chart above shows the spike in real prices and then the relative decline, despite a blip up in the late 1980s. Real house prices did not recover to their 1975 highs until 1996, thanks to inflation.

Back in 1987 the average house price was NZ$88,900. The average pre-tax income was NZ$485.98 a week and the average take home pay was NZ$365.41. Again, assuming a 33% deposit and a 15 year loan, the mortgage payment of NZ$67.39 NZ$246 a week works out at 18.4% 67.4% of take-home pay. That is even with interest rates at 20.5% as they were at the time.

That proportion quickly fell as interest rates fell to more normal levels in the early 1990s and house prices stagnated.

Fast forward to 2007-09 - 60% to 80% of income

Between 2002 and late 2007 house prices in New Zealand virtually doubled during a period of low inflation. They exploded in real terms as the chart above shows. Alan Greenspan was well entrenched with his low interest rates policy and a new higher tax threshold in New Zealand encouraged much borrowing to buy rental property.

Assuming the same 33% deposit and 15 year home loan, a person on the median income buying the median house now would be receiving NZ$734 after tax and paying NZ$449 in mortgage payments or 61.2% of disposable income.

[Brian d marge]

Please look up the CPI and what it does.

that’s all your doing ( is trying to recreate the stat dept numbers)

and the government statistics dept can do it a lot better

I also gave you the subsidies before 1976 , input, output and PSE.

The fact remains that if ya had eight cents and were to try and buy a pint of milk ( or bread or bananas or sweets) today ya couldn’t

BECAUSE

Inflation has eaten ya moneys buying power ( theft if ya ask me )

Stephen

and if I was pissed , ( which I wasnt ) when I wrote the original comment, just think of the damage a sober comment could do to poor dumb animals ( Oscar ) That would be a total mind fk.


Now piss off oscar and let the conversation continue

Stephen

[Oscar]

and if I was pissed , ( which I wasnt ) when I wrote the original comment, just think of the damage a sober comment could do to poor dumb animals ( Oscar ) That would be a total mind fk.


Now piss off oscar and let the conversation continue

Stephen

In case you had noticed, Mr. Swedish Motorcycle and I have been having a conversation.
If you weren't pissed when you posted that drivel, you should get checked for a Alzheimers.

[Brian d marge]

In case you had noticed, Mr. Swedish Motorcycle and I have been having a conversation.
If you weren't pissed when you posted that drivel, you should get checked for a Alzheimers.

Full Definition of CONVERSATION

1
obsolete : conduct, behavior

2
a (1) : oral exchange of sentiments, observations, opinions, or ideas (2) : an instance of such exchange : talk conversation>

supprime tuum stultiloquium!

Stephen

[Oscar]

supprime tuum stultiloquium!

Quis est haec simia?
I see you can cut and paste without spelling or grammatical errors.

[husaberg]

OK you used Meat as an example
I guess we would have to used say mince meat. Being as sausages well they are not the same as they once were.
For the carcass i receive a flat rate per KG of around $4-4.5 per KG.(depending on the size and the time of the year.)

Compare that to the supermarket price for a minute.

If we were to go back to the 1970's.
I would say my farm gate price has been greatly eroded.
As well as the affordability of the product decreasing as did milk.
Yet someone is doing very well.

I tripped over these on the net yes they came from a union paper but interesting reading anyway.
unite.org.nz/download_files/Exposing_Right_Wing_Lies.pdf

[Oscar]

OK you used Meat as an example
I guess we would have to used say mince meat. Being as sausages well they are not the same as they once were.
For the carcass i receive a flat rate per KG of around $4-4.5 per KG.(depending on the size and the time of the year.)

Compare that to the supermarket price for a minute.

If we were to go back to the 1970's.
I would say my farm gate price has been greatly eroded.
As well as the affordability of the product decreasing as did milk.
Yet someone is doing very well.

I tripped over these on the net yes they came from a union paper but interesting reading anyway.

I didn't use meat as an example, I said it would be interesting.
And by golly it is.

[husaberg]

I didn't use meat as an example, I said it would be interesting.
And by golly it is.

whoops i cocked up, my returns for beef included GST wipe so 15% off then remove the tax.killing and inspection fees.
400- gst=$373.33=$2.48KG ouch and i can run 5/ha and the land is worth $25000/ha and my costs are 1/3 of income.
Time to buy a supermarket lol
They also don't pay me for all the rest of the offal organs etc that they sell.

[jonbuoy]

Comparing the price of a few items doesnt give the whole picture. Who here generally has a higher standard of living than their parents/grandparents? Looking at the number of cars per household, amount of birthday/christmas gifts and luxuries for their kids (I can remember our grandparents saying how spoilt we were having more than one thing to open on Christmas day), how many times a month they eat out, quantity of new clothes - who wears patches on their trousers or turned downs anymore with Chinese clothes being so cheap,? Age of furniture/hi tech equipment, kitchen equipment, standard of decorating sheer variety of fruits and food in the supermarkets.

[husaberg]

Yes An undeniable truth lifestyle has changed, but wages have not keep up with cost of living and the distribution of wealth is being redistributed upwards at an alarming rate.

[Brian d marge]

Comparing the price of a few items doesnt give the whole picture. Who here generally has a higher standard of living than their parents/grandparents? Looking at the number of cars per household, amount of birthday/christmas gifts and luxuries for their kids (I can remember our grandparents saying how spoilt we were having more than one thing to open on Christmas day), how many times a month they eat out, quantity of new clothes - who wears patches on their trousers or turned downs anymore with Chinese clothes being so cheap,? Age of furniture/hi tech equipment, kitchen equipment, standard of decorating sheer variety of fruits and food in the supermarkets.

On one or two incomes ?

Stephen

[mashman]

[jonbuoy]

Yes An undeniable truth lifestyle has changed, but wages have not keep up with cost of living and the distribution of wealth is being redistributed upwards at an alarming rate.

I would have to agree there on some points, the more money you have the easier it is to make money. We all used to have a very basic lifestyle and existence.

Air travel was only for the rich and famous, holidays were spent in your home country, you only ate out for birthdays and very special occaisions. Clothes and toys were passed down. I even remember having to be one of the last in line to use the bathwater - unthinkable now - we all expect to have a hot shower every day.

Even the average family car from 20 years ago was very basic, a modern family car now has more gadgets, comfort and speed than a top of the range luxury car from 20 years ago- we are getting more for our money.

[Brian d marge]

Many things have become affordable due to technology ( manufacturing ) and the opening up of cheaper labour

still , on another note

I wonder why the Jermans want their gold back

http://www.forbes.com/sites/robertle...ck-in-germany/

is it because countries are moving away from the dollar ?

this will be interesting !

http://www.theguardian.com/commentis...f-economy-2016

for some reason the imf web site will not open

Stephen