It is happening with cars too, it just that features are being added even faster than the price can come down. If you wanted Ford F-150 in 1970, you could do most of it, but it would have been a multi-million dollar car. You get all that for 50k. You are getting a lot more per dollar.
This reminds me the housing discussing - a part of the affordability problem is that houses have gotten much bigger. And have air conditioning. And have to comply with strict building codes. And have to be fire safe.
Which is a problem. I know a people who would be happy with a smaller house, but there just aren't enough on the market, and the scarcity of them leads to bidding wars that drive the price up. Meanwhile huge houses sit on the market for months, because no one can afford them.
I don’t think this is true. Advancements in technology often make things possible that previously were not at any price. Engines, for example, are better than ever in part due to computer modeling that would have been impossible in the 70s. Same deal with aerodynamics, safety features, and a million other things. In the 70s, you couldn’t have those things for any price. They required decades of development in other sectors to open possibilities for automobiles.
Most technology on cars existed years or decades before the became commonplace and affordable enough to use outside racing or exotic cars.
Airbags were patented in the 1950s. Modern ABS in 1971. Fist electronic fuel injector in 1957. You could take the Formula 1 level technology of 1970, and with enough money, apply it to a pickup truck. It would be shockingly expensive - and not as good. T
hat's my point! You are getting so much more for your dollar today, even though prices have risen faster than inflation. You are getting a multi-million dollar truck for $50k.
> You are getting a multi-million dollar truck for $50k.
You’re not, though, because that truck never did and never could exist. A modern F-150 isn’t a 70s F1 car made cheap by new tech. This isn’t something you can wave away with an argument equivalent to “we put 1000 research points in the tech tree.”
When the US economy was working well, products got better and cheaper over time. Tech and increased labor productivity drove that. Now, tech and labor productivity has continued to increase, yet consumer prices have far outpaced inflation.
"A modern F-150 isn’t a 70s F1 car made cheap by new tech. "
Yes, it pretty much is. You have to consider technology in cars is moving on two seperate/distinct paths.
1: improving manufacturing processes, materials, quality, which is lowering prices over time. Megacasting aluminum car parts is an example.
2: Adding totally new complex parts and systems that cars didn't have. This is things like airbags, antilock breaks, infotainment system, catalytic converters. This adds to the total cost.
#2 is far outpacing #1, which is why prices of cars are going up faster than inflation, wages, etc.
Again, the old car comparison is demonstrably untrue. To put the same example forward, computer modeling has wildly changed and accelerated car design in ways that were impossible for any sum of money in the 70s.
I think part of why this is hard to believe is that people strongly believe in the concept that time is money. On the margins for decisions like hiring someone to mow your lawn, it is true. For large scale things, you often cannot accelerate processes no matter how much money you dump into it. A good example of this is how long it has taken China to industrialize.
To be clear also, you have to prove your point that #2 is outpacing #1. The fact that the price keeps going up is not proof as there are other explanations. The poor quality of domestic manufacturers and their bad business practices, for example.
This reminds me the housing discussing - a part of the affordability problem is that houses have gotten much bigger. And have air conditioning. And have to comply with strict building codes. And have to be fire safe.