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Big Economic Changes Over Last Hundred Years

Big Economic Changes Over Last Hundred Years

As you start the work week off, consider this.

The average yearly salary in 1913 was just $585. Not every two weeks. Not every month. Every year. That works out to just under $13K today.

And there’s more that has changed. Houses a hundred years ago cost just under $6,000. Now, obviously housing costs are much higher. So are we getting a raw deal?

“No, not at all,” said Steven Craig of the University of Houston. “It’s difficult to compare. You could have bought a house one hundred years ago, but it wouldn’t be the house you buy today.”

And here’s another change over the last 100 years. Income taxes. We just started to pay them in 1913. They have obviously gone up over the course of the last century. Craig says you might not like it, but it’s not like you’re paying for nothing.

“In 1913 the government wasn’t doing that much for us. So the money we were paying was going for essentials. Now we want the government to provide insurance for all kinds of calamities. Someone has to pay for that,” Craig explained.

The good news is, as we all know, that there's no state income tax in Texas. That's why Patrick Jankowski of the Greater Houston Partnership says you're better off here than in many other places.

“The average Houston household earns $80K a year. Elsewhere in the country it’s just $71K. You’ve got an average household income higher than the rest of the nation,” Jankowski explained.

Jankowski says if you live here, you're doing better than you would in many other places.

“We rank 19th lowest in cost of living out of the 20 largest metropolitan areas. If you look at those areas, we are 8% cheaper than the group as a whole,” Jankowski explained.

 

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