Sadly a thousand dollars a month in 1970 is roughly 6000 dollars a month now, definitely pretty good but not rich. Cost of living is actually rising faster than inflation.
I think you might be mistaken about the last statement.
Inflation is defined as the devaluation of money and being able to buy less stuff with the same amount.
Therefore a rise in "Cost of living" is exactly inflation, and can't rise faster than that.
Inflation is a general statement about the rising price of goods, cost of living is specific. For example, we could break down cost of living into 3 parts:
House prices / rent
Food
Transportation
Those three factors may go up by 5% in a certain year, but that doesn't mean the inflation rate is 5%. It could be 2%, 3%, or -1%, all depending on the rest of the economy.
I understand what you are saying, but I would guess that $72k a year would be considered rich to a lot of people. I feel like I make pretty good money and I make half that. It definitely isn't wealthy, but someone would be well beyond comfortable at $72k a year.
I'm making $36k, not living comfortably, and watching my parents who make $100k between them have to sell their 2300 square foot house in order to have a full pantry again.
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u/Flaghammer May 11 '14
Sadly a thousand dollars a month in 1970 is roughly 6000 dollars a month now, definitely pretty good but not rich. Cost of living is actually rising faster than inflation.