What summertime minimum wage workers can buy with their earnings in 1973 vs. 2015

Mark Perry of the American Enterprise Institute published two fascinating charts that compared what summertime minimum wage workers in 1973 and what summertime minimum wage workers in 2015 could purchase with their earnings. The charts pretty much show how capitalism has produced far more effective, efficient and cheaper technological products today than they did in the 1970s.

What’s interesting about these charts is the fact that inflation is found in pretty much every area of the economy (SEE: U.S. government admits cost of living rose in June, July), except in the technology sphere. This may change as more companies are returning back to the shores of the United States.

Indeed, technology prices may go up 0.1 or 0.5 percent at times throughout the year, but on the whole tech prices are at rock bottom. There are two reasons: more powerful chips and cheaper labor.

China’s comparative advantage is manufacturing and that’s because of cheaper labor and geography. This is why much of what you see in stores is “Made in China” and companies outsource their manufacturing to China or other East Asian countries.

But we digress…

Here are the charts:

Finally, you would need multiple devices to complete tasks. For instance, if you wanted to call somebody, you needed a landline or a payphone. If you wanted to type something, you needed a typewriter. If you wanted to watch a show, you needed a television. Today, a smartphone does all of that, and more!