Why has some things quadrupled in price, yet other things are cheaper to buy?

renegadefm

I find it odd how house prices,  even fuel to run the car has quadrupled in just 30 years,  yet some things like televisions you can buy at a fraction of the cost they were in the 70's.
I started driving in 1986, when petrol was just £1.07 for a gallon,  now we all know there are 4 litres in a gallon,  which means at on todays prices on average at £1.20 a litre its more than quadrupled in price in just over 30 years.
The house I live in was bought by my gran in 1979 for just £9000. Now its in the region of £140,000.
Its scary when you think this surely cant go on at this rate,  because the young generation won't stand a chance at getting a house or being able to afford to drive to work in the first place. 
When I got my first job in 1986, just £6 would half fill my petrol tank, so it would last all week. Now to achieve the same thing I'm having to put in just over £30 just to get to work. This is a big chunk of wages and I havent added driving to extra places yet.
Yet we can go and get a top smart tv for roughly £300. Compared to having to spend around £700 for a basic colour tv in the 70's 
How can this upside down world continue? 

GDB2222

I'm embarrassed to say that I remember when petrol went up to 10s (that's 50p) a gallon. Shortly before decimalisation, which was in 1971.  I also remember when integrated circuits were first around, and of course they are one of the main reasons why TVs are vastly cheaper than they were. 

ukcarper

In 1972 petrol was 32p a gallon I remember because it was when I bought my first house. Which means it has increased by about 18x, earnings in a similarly job to that I had then has increased by about 22x, the house I bought has increased by 36x. I think it was the 1973 oil crisis that made it jump, I worked part time in a garage in 1966/7 and 2 star was 4s 10p a gallon.

GDB2222

    You mean i misremembered? 

ukcarper

GDB2222 said:

    You mean i misremembered? 

Yes I think you possibly do, I did google it before I posted.

MobileSaver

renegadefm said:

I find it odd how house prices,  even fuel to run the car has quadrupled ...  yet some things like televisions you can buy at a fraction of the cost they were ... Its scary when you think this surely cant go on at this rate,  because the young generation won't stand a chance at getting a house or being able to afford to drive to work in the first place. ... How can this upside down world continue? 

Welcome to the Capitalist world we live in, not perfect but better than any of the alternatives out there; what you describe is simply supply and demand.

Land (and therefore houses) and petrol are finite resources with ever increasing demand hence the price increases. Anyone could start producing more TVs tomorrow yet demand is falling so the price falls.

The young will be able to afford homes and cars in the future but the poorer ones will have to compromise the same way most of us did when starting out in life. For example that may mean buying a sensible fuel-efficient electric car rather than a gas guzzling hot rod. Similarly the poorer young may have to buy a two-bed terraced doer-upper in a less desireable area rather than a new-build three bed semi in the best part of town...

renegadefm

MobileSaver said:

The young will be able to afford homes and cars in the future but the poorer ones will have to compromise the same way most of us did when starting out in life. For example that may mean buying a sensible fuel-efficient electric car rather than a gas guzzling hot rod. Similarly the poorer young may have to buy a two-bed terraced doer-upper in a less desireable area rather than a new-build three bed semi in the best part of town...

I dont know where you live, but it certainly isn't like that in Cornwall. Cost of living is sky high and house prices to match, yet wages are poor and high payed jobs are scarce. Meaning the youth of today cant buy a property. My son is one of them. Hes 29 now, worked since he left school,  but can't get his first property. Cost of living is so high to rent he cant save for a deposit either. Hes stuck in a rut like most people I know here. 
Doesnt help people from inner cities up country sell their house for a fortune and come down here and buy up properties to rent out which pushes the locals out even more due to them paying over blown prices for basic houses.
Should be a law against it really. 

silvertooth

Measure actual things with things rather than with fiat currency 

for example how many bushels of wheat are valued the same as a barrel of oil last several decades.

how many kilos of sugar valued the same as an ounce of gold......

how many ounces of silver valued the same as an average house price?

Herzlos

Some things get cheaper as the technology improves and economies of scale increase - TV's in the 70's were still using glass tubes and were pretty time consuming and bulky to make in relatively small numbers - the 70's likely had TV's in most houses but they were likely to only be a single TV. Moving forward 50 years TV's are using LCDs which can be produce more easily and in much larger bulk, they are much smaller (in terms of thickness and weight) so easier to handle.

Take oil on the other hand - as demand increases, more of it needs to be collected (getting more expensive as the cheaper sources are exhausted), and more of it needs to be transported. Of course, UK fuel prices are mostly tax.

ukcarper

Not sure petrol prices are more expensive in 1985 they were 44p a litre and average earnings were £9000

renegadefm

ukcarper said:

Not sure petrol prices are more expensive in 1985 they were 44p a litre and average earnings were £9000

I see where your coming from. But when I started driving in 1986 I could half fill my tank for £6 and it would last all week for work. Now that costs at least £30 to do the same thing. I know wages were less back then,  but it didnt feel an ouch to the pocket as it seems to feel now.
I mean to fill my tank right up your looking at £85 to £90. When probably around £15 would have done the job in 1986. Weighing up that with wages difference,  I know what era I'd rather be living in. That wasent meant sarcastically,  its just how I see things.
My son cant even get on the property ladder now yet I could 30 years ago.