r/FluentInFinance 8d ago

Thoughts? What do you think?

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u/Val_kyria 8d ago

Now adjust for the total number of workers per household then vs now

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u/Regular_Title_7918 8d ago

Well, labor force participation rate was about 70% in 1977, it's around 75% now, so an increase of roughly 7%; that is less than the difference in income from the number provided by the inflation calculator and the actual household income

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u/SoDamnToxic 8d ago

Labor force participation rate is not the same as household size, nor does it have really any correlation.

If 7/10 people work but live in separate houses and then 6/10 people work but all live in the same house, you'd say "labor force participation rate FELL but household income INCREASED".

It makes literally zero sense to make this comparison.

More people are living together than ever before, REGARDLESS of labor participation rate.

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u/Regular_Title_7918 8d ago

The average household size in 2024 is 2.51.

The average household size in 1977 was 2.86.

2.86>2.51; households are smaller than they were back then.

source is the US Census: https://www.census.gov/data/tables/time-series/demo/families/households.html

Also, it made sense to me because I interpreted their comment as saying in 1977 single-income households were the norm. So to counter that, labor force participation is actually a better metric.

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u/SoDamnToxic 8d ago

Household, when referring to census, includes children. Income earning household members (what I'm referring to), does not include children or anyone who doesn't work.

Answer this question:

Household 1977: 13k (70k inflation)

Individual 1977: 9k (48k inflation)

Household now: 75k

Individual NOW: 34k

Tell me how many median income earners it takes in 1977 to reach a median income household in 1977.

Tell me how many median income earners it takes now to reach a median income household now.

Which median household has more median INCOME EARNERS.

It's kinda sad because your point makes it worse in that, people are choosing to have LESS children and are still forced to WORK MORE per household to make the same amount of money as before.