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I think this has a lot to do with the under counting of inflation. If you go back to 80s methodology inflation has been much larger that what they've let on.
I no longer do a double take at a sandwich costing $25 at takeout restaurants in the area where I live. 10 years ago, I would have been surprised to see a sandwich cost $15 at anywhere but an upscale restaurant.
The only real statement we get is,
> From 2019 to 2020, every State and Washington, DC, saw decreases in inflation-adjusted, per capita total food spending.
But the overall graph featured near the top of the article's slope is steep enough, I think, that the per-capita number hidden somewhere in there is also increasing across the duration. If I've done the napkin math right, roughly $2k/person/yr to $2.7k/person/yr.
But the big graph as presented confounds the problem we want to see the data on (stuff is getting more expensive) with population growth.
Shhh, don't look at that. Just focus on "U.S. GDP grew at a 4.9% annual pace in the third quarter, better than expected (cnbc.com)" https://news.ycombinator.com/item?id=38025177 and celebrate. Sure, 90% of Americans under 50 will never be able to buy a house. They are one injury away from bankruptcy. But the GDP!
Aren't age-adjusted homeownership rates roughly the same for millennials as it was for baby boomers? I won't argue that it's harder and more expensive, it sure is, but millennials seem to prioritize it enough to do whatever it takes to own a home, so home prices keep going up.
Some highlights from these sources:
[1] Today the millennial homeownership rate is 43 percent, well below the rates of generation X (67 percent) and the baby boomer and silent generations (77 percent). An important feature of millennial homeownership that often gets muddled in the media conversation is that it is increasing, and with few minor exceptions, it has always been increasing. The oldest millennials turned 18 in 1999, and every year since then there has been a net increase in the number of millennial-owned homes. Since the Great Recession, the millennial homeownership rate has grown faster than any other, particularly in the last five years while the economy has expanded quickly. Today, millennials are the least likely to own a home, but they are the most likely to purchase one.
Millennial homeownership is rising, but it is rising slower than it did for previous generations. The chart below (see link) compares homeownership rates for each generation as they age
[2] If we isolate the effects of delayed household formation proxied by changes in marital composition (i.e., we assume the marriage rate was the same as in 1990), we find the hypothetical real homeownership rate would have been 39.1 percent, 9.8 percentage points higher than current levels. As of 2021, there are 44 million young adults ages 25 to 34, meaning there would be 4.3 million additional homeowners.
[1]: https://www.apartmentlist.com/research/homeownership-by-gene... [2]: https://www.urban.org/urban-wire/real-homeownership-gap-betw...
I eat a lot of eggs and meat, and their prices are at least 50% higher than last year, not 6%. Inflation measures are such a joke.
Everyone knows they are spending way more on food. The CPI inflation numbers feel like a lie.
But that's not what's happening in this article. The Food Away From Home share has hit an all-time high, and FAFH costs more (because it contains more internalized labor than groceries). Americans eat out a lot because they are unbelievably rich.
Meanwhile, the legal requirement for paid parental leave in most places is 0 days. Paid sick leave? 0 days. Notice period for firing an employee? 0 days. Cost of 1 year at a 4 year university? $36,436 [6]. You get the idea.
We're rich compared to developing countries, but we're a far cry from "unbelievably rich".
[0] https://endhomelessness.org/homelessness-in-america/homeless... [1] https://www.worldometers.info/world-population/malta-populat... [2] https://www.census.gov/library/publications/2023/demo/p60-28... [3] https://www.census.gov/library/publications/2023/demo/p60-27... [4] https://www.anthem.com/individual-and-family/insurance-basic... [5] https://www.fool.com/the-ascent/research/average-monthly-exp... [6] https://educationdata.org/average-cost-of-college
Before the doomers run away with this thread, real spending on food prepared at home is down . This is more than off set by increased spending at restaurants. This returns to the pre-covid trends.
I'd love to see a better understanding of why American HN commenters, a cohort that likely makes 2-3x the typical compensation of an ordinary American, wants to catatastrophize a pretty decent to great American economy. The comments are literally data being "refuted" with anecdotes.
Earlier quoted context omitted.
This is a byproduct of the US political polarization. The state of the economy (and every other attribute of the US) has become a football game, and you must agree with your team on the state of it per whatever the talking head coach says, lest you grant the opposing team a "win". This ruins honest discourse about the state of things.
The state of the economy is objectively good to great. 3.9% unemployment as of today. 5% GDP growth over the quarter.
In reality, you don’t have to. You know that even if you have been getting a raise at work it is nowhere near what real inflation has been.
This is objective reality. The economy is shitty for most.
Earlier quoted context omitted.
The state of the economy is objectively good to great. 3.9% unemployment as of today. 5% GDP growth over the quarter.
As long as those are your only (or dominating) objectives.
Now we're being told low interest rates are the dominating objective of having a good economy, even though they're lower than when my parents bought their first and only house in 1994 and lower than they were during the dot-com bubble.
> Real total food spending increased 11.4 percent in 2021 and 3.4 percent in 2022, driven by higher FAFH spending (up 19 percent in 2021 and 8 percent in 2022). Real FAH spending increased by 4 percent in 2021 but decreased by 2 percent in 2022. FAH = food at home FAFH = food away from home So, eating out is killing our wallets. Not really a surprise considering "dollar menu" items at McDonalds now cost $6 and a half…
> "dollar menu" items at McDonalds now cost $6 No need to exaggerate. It's called the "$1 $2 $3 Dollar Menu" now, and in my expensive urban area, the priciest item on it is $3.19 (McDouble). It's definitely not an actual dollar like it was twenty years ago, but it's sure not $6 either.
Earlier quoted context omitted.
But that's not what's happening in this article. The Food Away From Home share has hit an all-time high, and FAFH costs more (because it contains more internalized labor than groceries). Americans eat out a lot because they are unbelievably rich.
The United States has a homeless population bigger than Malta [0][1]. 11.5% of our population -- 38 million people -- live in poverty [2]. The median household income is $74,580 and health insurance for a family of 4 costs $17,244 ($1,437 * 12) per year [3][4]. Average housing expenditure is $24,300 ($2,025 * 12) per year [5]. This leaves $33,036 per year in household income BEFORE taxes are taken in to account. Mean…