The rich must have started working much harder in 1980

[cthulu2016]

11. That's partially, but not entirely true

The componded CPI since 1980 is almost exactly 300%.

A gallon of milk cost 1.70 in 1980.
The average new car was $7800.
A gallon of gas was 1.25.
the average new home was $76,400.00.

These things are not out line with base inflation. They seem to be because people don't make very much money today.

Higher education is a genuine runaway inflation deal, particularly since the $$$ value of the education is lower. Higher education is INSANE.

Healthcare has gone up a lot, but there is an apples and oranges problem. The cost of 2012 healthcare would have been infinity in 1980 since half the drugs and procedues we take for granted did not exist. In 1980 few people were on daily prescription drug regimens. Today almost everyone is. We do procedures like heart stents and hip replacements as a matter of routine. Healthcare is definately an area of wildly above-trend total-cost increases, but it is not so easy to separate out. For instance, the cost of cataract surgery is lower today and the results are much better. On the other hand, a lot more people get the procedure. Individual cost down, value up, aggregate cost up.

housing - not really (Apples to apples perhaps lower or higher... what was standard in a new home kitchen in 1980? Not much. On the other hand, the construction was "heavier" in 1980. etc.)
healthcare - yes, very much but with apples to oranges problem
education - insane inflation. A major problem
energy - cheaper than in the 1970s, adjusted for inflation
food - apples to apples, (so to speak) not out of trend.

We have had an illusion the last two years of global comodity price increases being out of line with US GDP growth due to increasing competition from China and India, but demand-driven comodity spikes are not true inflation.

The median househol income in 980 was $17,710. In 2010 it was $49,445. So even that is in-line with inflation. But GDP has increased a lot more than inflation without raising median income above inflation. Income distribution has become much more skewed.

And since higher education and healthcare are (in effect, even if not always apples to apples) well above trend then people have fallen further behind.

The stock market has gone up at triple the inflation rate since 1980 so people with money have kept up.

Of course I agree that people have fallen further behind -- I'm just not citing food, housing and energy. It's education, health and income distribution