The boat turns slowly

[Nor-LA-SD-guy]

[quote=jpinpb][quote=Nor-LA-SD-guy]The housing Bubble would never have happen had they not changed the CPI to owner equivalent rent in 1981 i think.[/quote]

For some reason I thought housing was not included in the CPI. Can you help me out w/that?[/quote]

Consumer Price Indexes for Rent and Rental Equivalence
see the link below

http://www.bls.gov/cpi/cpifact6.htm

In the seventies the boomers were just starting to enter the Job and housing market driving demand and worker supply through the roof which was one of the main causes of inflation , and back in those days 7 out of 10 people were union workers so they got cost of living raises every year to 6 months (we were getting 15-18% inflation and raises back then).

For some reason the Fed in 1981 got the brilliant Idea that workers, did not need to own homes, they only needed to pay rent so why should we count home buying as an consumer necessity ??

Enter Owners Equivalent rent.

This was followed almost immediately by the late 1980’s housing bubble (still small by today’s bubble standards) then housing bust in 1990’s, then the new housing bubble in 2000’s etc…

Anyway that’s how I see it.

[Nor-LA-SD-guy]

I should also point out that in the 70’s home prices also went up about equally as the 2000’s percent wise but the difference was so did workers pay.

[Nor-LA-SD-guy]

I should also point out that in the 70’s home prices also went up about equally as the 2000’s percent wise but the difference was so did workers pay.

[Nor-LA-SD-guy]

I should also point out that in the 70’s home prices also went up about equally as the 2000’s percent wise but the difference was so did workers pay.

[Nor-LA-SD-guy]

I should also point out that in the 70’s home prices also went up about equally as the 2000’s percent wise but the difference was so did workers pay.

[Nor-LA-SD-guy]

I should also point out that in the 70’s home prices also went up about equally as the 2000’s percent wise but the difference was so did workers pay.

[UCGal]

[quote=Nor-LA-SD-guy]
In the seventies the boomers were just starting to enter the Job and housing market driving demand and worker supply through the roof which was one of the main causes of inflation , and back in those days 7 out of 10 people were union workers so they got cost of living raises every year to 6 months (we were getting 15-18% inflation and raises back then).
[/quote]

Do you have anything to back up the 7 in 10 workers were union figure. I searched and only found data back to 1983… about 20%, 1 in 5, workers were union then.
http://www.bls.gov/opub/mlr/2008/10/art3full.pdf

And this table shows 26.4% of non-agricultural workers were union in 1975. Even if you put 100% of agricultural workers into the “union” category (which is unrealistic) you don’t get 70%.
http://eh.net/encyclopedia/article/friedman.unions.us

I’d say that 1 in 4 workers being union in the 70’s is probably a more accurate figure. Pushing it maybe 1 in 3… but not 7 out of 10.

[UCGal]

[quote=Nor-LA-SD-guy]
In the seventies the boomers were just starting to enter the Job and housing market driving demand and worker supply through the roof which was one of the main causes of inflation , and back in those days 7 out of 10 people were union workers so they got cost of living raises every year to 6 months (we were getting 15-18% inflation and raises back then).
[/quote]

Do you have anything to back up the 7 in 10 workers were union figure. I searched and only found data back to 1983… about 20%, 1 in 5, workers were union then.
http://www.bls.gov/opub/mlr/2008/10/art3full.pdf

And this table shows 26.4% of non-agricultural workers were union in 1975. Even if you put 100% of agricultural workers into the “union” category (which is unrealistic) you don’t get 70%.
http://eh.net/encyclopedia/article/friedman.unions.us

I’d say that 1 in 4 workers being union in the 70’s is probably a more accurate figure. Pushing it maybe 1 in 3… but not 7 out of 10.

[UCGal]

[quote=Nor-LA-SD-guy]
In the seventies the boomers were just starting to enter the Job and housing market driving demand and worker supply through the roof which was one of the main causes of inflation , and back in those days 7 out of 10 people were union workers so they got cost of living raises every year to 6 months (we were getting 15-18% inflation and raises back then).
[/quote]

Do you have anything to back up the 7 in 10 workers were union figure. I searched and only found data back to 1983… about 20%, 1 in 5, workers were union then.
http://www.bls.gov/opub/mlr/2008/10/art3full.pdf

And this table shows 26.4% of non-agricultural workers were union in 1975. Even if you put 100% of agricultural workers into the “union” category (which is unrealistic) you don’t get 70%.
http://eh.net/encyclopedia/article/friedman.unions.us

I’d say that 1 in 4 workers being union in the 70’s is probably a more accurate figure. Pushing it maybe 1 in 3… but not 7 out of 10.

[UCGal]

[quote=Nor-LA-SD-guy]
In the seventies the boomers were just starting to enter the Job and housing market driving demand and worker supply through the roof which was one of the main causes of inflation , and back in those days 7 out of 10 people were union workers so they got cost of living raises every year to 6 months (we were getting 15-18% inflation and raises back then).
[/quote]

Do you have anything to back up the 7 in 10 workers were union figure. I searched and only found data back to 1983… about 20%, 1 in 5, workers were union then.
http://www.bls.gov/opub/mlr/2008/10/art3full.pdf

And this table shows 26.4% of non-agricultural workers were union in 1975. Even if you put 100% of agricultural workers into the “union” category (which is unrealistic) you don’t get 70%.
http://eh.net/encyclopedia/article/friedman.unions.us

I’d say that 1 in 4 workers being union in the 70’s is probably a more accurate figure. Pushing it maybe 1 in 3… but not 7 out of 10.

[UCGal]

[quote=Nor-LA-SD-guy]
In the seventies the boomers were just starting to enter the Job and housing market driving demand and worker supply through the roof which was one of the main causes of inflation , and back in those days 7 out of 10 people were union workers so they got cost of living raises every year to 6 months (we were getting 15-18% inflation and raises back then).
[/quote]

Do you have anything to back up the 7 in 10 workers were union figure. I searched and only found data back to 1983… about 20%, 1 in 5, workers were union then.
http://www.bls.gov/opub/mlr/2008/10/art3full.pdf

And this table shows 26.4% of non-agricultural workers were union in 1975. Even if you put 100% of agricultural workers into the “union” category (which is unrealistic) you don’t get 70%.
http://eh.net/encyclopedia/article/friedman.unions.us

I’d say that 1 in 4 workers being union in the 70’s is probably a more accurate figure. Pushing it maybe 1 in 3… but not 7 out of 10.

[Nor-LA-SD-guy]

UCGal,

You are correct, I over estimated the amount of union workers in the 70’s, but they are only about 12% of workers today so their impact has been far diminished, and it was the Owners equivalent rent that was the biggest factor in keeping CPI much higher in the 70’s, it would have been close to 10% inflation if we were still including the cost to buy homes in the 2000’s and that would have forced the fed’s to both raise minimum wage much faster and also keep interest rates much higher during that period.

[Nor-LA-SD-guy]

UCGal,

You are correct, I over estimated the amount of union workers in the 70’s, but they are only about 12% of workers today so their impact has been far diminished, and it was the Owners equivalent rent that was the biggest factor in keeping CPI much higher in the 70’s, it would have been close to 10% inflation if we were still including the cost to buy homes in the 2000’s and that would have forced the fed’s to both raise minimum wage much faster and also keep interest rates much higher during that period.

[Nor-LA-SD-guy]

UCGal,

You are correct, I over estimated the amount of union workers in the 70’s, but they are only about 12% of workers today so their impact has been far diminished, and it was the Owners equivalent rent that was the biggest factor in keeping CPI much higher in the 70’s, it would have been close to 10% inflation if we were still including the cost to buy homes in the 2000’s and that would have forced the fed’s to both raise minimum wage much faster and also keep interest rates much higher during that period.

[Nor-LA-SD-guy]

UCGal,

You are correct, I over estimated the amount of union workers in the 70’s, but they are only about 12% of workers today so their impact has been far diminished, and it was the Owners equivalent rent that was the biggest factor in keeping CPI much higher in the 70’s, it would have been close to 10% inflation if we were still including the cost to buy homes in the 2000’s and that would have forced the fed’s to both raise minimum wage much faster and also keep interest rates much higher during that period.

[Author]

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