Why is everything so expensive (general rant)
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Anonymous
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I believe the impact of the Baby Boomers retiring en mass has not been properly accounted for in the inflation narrative, particularly when it comes to the price of services.
Back when we bought our house in 2017, we got a few handyman recommendations and some of these were men were pushing 60. They actually took time to do a decent job and their rates were very affordable. Now? They've left the labor force - many left the area completely. Their replacements are younger subcontractors who don't speak much English and their bosses charge high rates. Boomers who already had some assets they bought cheaply - a paid off truck, an older modest home out in PG or HoCo or Up-County MoCo - didn't demand a ton of money for their wages. They didn't have high overhead. The same thing was prevalent when we were renting in DC - I would usually rent from someone who had owned the property for 20-30 years. They were not price sensitive because the home was either paid off or bought for a song with a stupid-low mortgage. As soon as that Boomer sold the RE for huge appreciation, the next owner would need to jack up the rent to cover the big mortgage. I think the narrative of the "missing" Baby Boomers has received short shrift in our discussion about prices. When we see this generational turnover in the workplace AND with long-held asset sales, it spurs inflationary pressures. |
Anonymous
It's like this in most places now. Companies are making money hand over fist, but they are giving very few people raises. |
Anonymous
No, because it not true. It is not true just because you say so twice. "more than a chance than if I defended him"? You believe in manifestation? Our thoughts and beliefs can make truth? |
Anonymous
Go back to your basement and keep watching Fox or Alex Jones. Trump is going to make the rich richer and that’s it. He doesn’t care about your finances at all. |
Anonymous
Very interesting presentation on this issue: "Revenge Of The Baby Boomers" https://www.financialplanningassociation.org/sites/default/files/2023-09/2.%20Federated%20Hermes-%20Revenge%20of%20the%20Baby%20Boomers-August%202023-Linda%20Duessel.pdf |
Anonymous
It's that last part. It would be one thing it the cost of hotels and flights had gone up but it felt like the service level was at least consistent with like 2016/2017 level service. But since Covid, service especially at hotels and restaurants is just down the toilet. I know they are having trouble staffing and retaining staff and that's a huge part of it. But when you're paying so much more to get so much less service, it is painful. We used to be able to do a quick weekend getaway like what OP is talking about for a few hundred dollars. Maybe a night in a hotel in Richmond or Charlottesville or Philly, a dinner out, plus travel, Maybe go to a museum or other attraction. Nothing elaborate. We'd go to Philly where they have those BYO restaurants for alcohol and it would make dinner super cheap -- buy a good bottle of wine or tequila for margaritas on the way. Get discount Amtrak tickets or just drive. This now costs twice what it used to and it's just not worth it. Every aspect of it costs so much more. The hotel that used to be $180 is now $300. Valet parking for one night is $50 instead of $20. Dinner sans alcohol is $90 instead of $60. The alcohol is $40 instead of $25. And so on. The Amtrak tickets are twice as much even buying early on discount. Or gas is pricier. The car we drive in is pricier. Museum tickets are pricier. We make about 15% more now than we did in 2017. That trip costs 100% more. It doesn't add up. In terms of actual value for money, we are poorer now than we were 7 years ago. Our money doesn't go as far, it's' harder to save, and even when we do save, it offers us less leverage than ever. It's like trying to climb up the down escalator. I don't think we'll ever make it to the top. |
Anonymous
| We had very little inflation and very low interest rates for a long time in most sectors... Exceptions being housing, healthcare, and education. Now costs are coming more in line. It sucks. |
Anonymous
"Revenge"???? What the heck are they getting revenge for? And on whom? Who hurt them? Baby boomers had it GOOD, and still do. |
Anonymous
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This is what you get when you cheer on lockdowns! Y’all happily wanted society shut down for the cold, and now you complain.
JFC you don’t have to be an economist to know this would happen |
Anonymous
No arguing on the higher costs for travel related expenses. But if you make 15% more-- let us say it is $20-50K more than 2017 for your household. That is more than enough to spend double on a couple weekend trips to Philly. Same situation for others, which is why the travel costs are high. |
Anonymous
But why should service cost be doubled when people’s actual income is not doubled? Yes, it’s enough to afford it, but people have to spend a higher proportion of their income to do it. And they’re spending a higher proportion on many other things. |
Anonymous
The subject of this thread is to rant, which is perfectly fine and actually fun. But look at fast food worker salaries since 2019. Also look at the typical white collar salary. They are up 15-30% on average compared to 2019. It is a fact. Do I spend 100 percent of salary on services? No. Services are mostly discretionary, except for home/auto insurance and a few other things. So the typical employed worker makes a lot more $ compared to a few years ago and it is reflected in service costs. A good analogy would be Disney World. I cannot justify the cost of $150 per day per person for tickets and will not go there with the kids (they are not interested in Disney anyway). Check the crowds though, it is pretty insane. |
Anonymous
The shortages during the pandemic allowed people to raise prices and there is now no reason for them to reduce pricing. |
Anonymous
Actually, this is true. I employ painters, window washers, cleaners, landscapers, flooring and carpet installers, gutter cleaner, to prep houses for sale. All of their rates have gone up substantially. Another change in the last five years is more women going into the trades. Someone else mentioned older men retiring during the pandemic because they had enough money and didn't need to bust their butts. Many of the painters are now women, and I also see them in plumbing and electrical companies. One company I use does both cleaning and painting. The owner who started out as a painter said that he couldn't find painters and trained young cleaning women to paint at twice the hourly rate they got cleaning. The higher wages are contributing to inflation -- at least in this area. |
Anonymous
Exactly. It’s so obvious - look at all of the companies and their stock prices. Their CEOs are making tens of millions in bonuses. |