Data Project 10: Why Your Generation Can't Afford What Your Grandparents Could
A 50-year economic analysis with 2050 predictions using real data
For a while, I have been thinking about how our family easily bought their houses, and how our ancestors bought lands easily, and why we could even have a hard time renting simple houses that they would not want to live in.
We are on the edge of a new era, the AI age, everything is smarter, we can reach information more easily, even build companies in a day, with the product, but cannot live without a two-month salary?
And I wonder, how will this paradigm shift when our children grow older? To analyze how the economy has changed in the last 50 years and how it will be by 2050, I use the following datasets:
FRED - Median Sales Price of Houses
FRED - Real Median Personal Income
FRED - CPI Used Cars and Trucks
Worldometer - World Population by Year
FRED - CPI All Urban Consumers
I analyzed historical data to see how everything has changed and how it will be by 2050:
How many months will an average-income person need to work to buy a house by 2050?
How many months will an average-income person need to work to buy a car by 2050?
How will purchasing power change by 2050?
Let’s combine these datasets and build a predictive model to understand why it's become so hard to buy a house, a car, and maintain a life, and how it will be in the next 25 years.
I think I’ve found the core reason. (0.98 correlation.) The predictions will shock you, and the purchasing power of our money will go near zero by 2050, which suggests a change. (crypto money?)
Note: All Analysis, including the code and slides for this data project, is in gDrive and available to our paid subscribers.
