What 50 Years of Inflation and Taxes Does to Your Salary in California
Rent and home prices in California are extremely out of control. With the increased cost of living prices in the communist state, it makes sense that wages are significantly higher than in other states with lower cost of living. To the average person, they'd think it all evens out. Sure, to live in Communist California you have to spend more, but your increased wages reflect that added cost.
However, when you look at real inflation numbers, it tells a different story.
The Instagram account @thenextgenbusiness breaks down the last fifty years of inflation and taxes in California, comparing it to the increased rent and home values... and the results are shocking, to say the least.
Let's take a measured look at inflation and taxes in California over the last 50 years.
Currently, the median income is $84,100. Just 20 years ago, it was $47,400, and 50 years ago, it was $9,300. This represents an increase of over 800%.
However, when adjusted for inflation, real wages increased by a modest 13%.
Here's something noteworthy: Over the past 20 years, California’s average tax rate for middle earners has actually decreased by 2%.
Now, let’s turn our attention to housing. In 1970, median rent was $126/month. Adjusted for inflation, that would be equivalent to about $1,060/month today. But today’s actual median rent in California? A total of $1,930/month.
Considering homeownership? In 1970, the median home price was $23,100. Fast forward to now, and it stands at an astonishing $685,000. When adjusted for inflation, this represents an increase of 241%.
Mortgage comparisons are also striking. In 1970, a typical monthly mortgage payment was $124. Today, it’s around $3,700.
Over the past 50 years in California, real wages have increased by just 13%, while inflation-adjusted rent has soared by 82%, and the price of a home has leaped by 241%.
Now the out-of-control homelessness and the mass exodus of people leaving California makes sense. This is what happens when Democrats are in charge. If they continue to rule this country, we'll see these kinds of numbers expand to the rest of the nation.
Which leads us to the reality that you've got to do something to protect your money. With inflation rates where they are, every day that your money is sitting in your savings account, it's losing value. Saving is no longer the solution to protecting your wealth. Assets are. Which is why you should reach out to Our Gold Guy to see if investing in gold is right for you. It very well may save your life-long savings from quite literally going down the tubes. Click here to request a complimentary consultation.