Keeping Up: Notes From An Armchair Economist

[NotHardUp1]

Homes and cars aren't what they once were. Seems that most folks need far more sq. feet and have fewer children than in the '50's. My home was built in 1952 and is about 800 sq. ft. (that includes an addition for a laundry room). In the 50's most blue-collar workers drove used cars that were plain Janes, most had standard steering, brakes and transmissions.
Today starter homes have to be around 1800 sq. ft. and cars, suv's and pick ups all have every bell and whistle you can think of. There are some "cheap" cars out there but you don't see many. I know guys that think nothing of a $200. plus cable bill.

To put it into perspective in lawn care I have customers in "McMansions" that want a lawn manicured for $40. and they have large yards, people in my neighborhood have small yards and gladly pay $35. and aren't too fussy. The wealthy realize the value of a dollar... the poor seem to "let go" of a buck far easier. You won't find many wealthy people buying lottery tickets either.

The adults in the 50's had been around during the depression (or were raised by parents that had been) and waste not want not was the mantra, I heard it almost daily.

And, I think the starter homes, like Levittown and those inspired by it, plus those small homes that were the norm in post-Edwardian America, were understood to be a coming thing. Prior to that, couples may or may not have had their own home upon marriage, depending on the wealth of their family and the market around. When my grandparent wed, his company paid for his house (rent) as part of his salary package. He was an account troubleshooter for dry good stores, before the Great Depression, during, and after. They were quite proud of their little house.

 

[NotHardUp1]

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There's a handicap parking space in front of the office tower where my gym is located. Often the space is occupied by either a Lamborghini or Ferrari with a handicap pass hanging from the rear-view mirror. I've never seen an automobile there that a handclapped person could easily get into, let alone drive. I've assumed the cars are owned by one of the hot early-thirties Iranian guys who work out there. I've imagined of keying the purple iridescent wrap on the former or the "rossa corsa" paint job on the latter, but I know the pleasure I'd feel in doing so would be outweighed by the guilt I'd feel afterward.

A contractor with whom I've done a number of houses told me that many of the contractors he knows tell him they did "very well" during the pandemic with the Covid relief payments that were given out--even though construction projects were considered "essential" and were not shut down--and that the government required no verification for a claim as long as it was under $100,000.

So many people wangle hangers from their doctors, or from a friend or relative, or even have one for an elderly parent or grandparent, but use it when the qualifying passenger is not even in the car.

The federal hog trough is always there for the greedy and abusive. My industry, Aerospace and Defense, never stopped during COVID, but is collecting billions and billions from that slush fund. Just as shameful as Teapot Dome.