In 1979, when my parents bought a new Dodge Aspen wagon, its price of $5,000 was around the median car price, at about ⅓ of the median annual wage. That’s about $22,000 in 2026 dollars, which is about ⅓ of the median annual wage now. But the median car price is up to $50,000.
Well, yeah, inflation numbers are definitionally arbitrary even if you trust the math, since they depend so much on the judgement of the people compiling the data. The important point here is that the cost of a new car has gone up to a whole year’s pay, or more, for a lot of people.
In 1979, when my parents bought a new Dodge Aspen wagon, its price of $5,000 was around the median car price, at about ⅓ of the median annual wage. That’s about $22,000 in 2026 dollars, which is about ⅓ of the median annual wage now. But the median car price is up to $50,000.
If you believe the inflation numbers…
Well, yeah, inflation numbers are definitionally arbitrary even if you trust the math, since they depend so much on the judgement of the people compiling the data. The important point here is that the cost of a new car has gone up to a whole year’s pay, or more, for a lot of people.