This chart pops up on the internet now and then – and just got updated. It shows how much prices have changed since the ‘turn of the century’ for a number of categories.
No surprise, Healthcare and College Tuition have grown much more expensive. They far out pace every other category on the chart, including wages, housing and food.
Other things have dropped in price. The cost of new cars, clothing, furniture, and electronics are down precipitously.
Unfortunately, retirees have the most exposure to healthcare costs. That makes early retirement a riskier than average endeavor.
It’s not hard to divine that the sectors that have grown the most have the highest subsidies from the government – and the largest bureaucracies. The number of administrators in hospitals and universities today is shocking.
I only wish the author of the chart – Mark J Perry (a University of Michigan professor who is an interesting follow on X) – would include K-12 spending, Federal/State taxes, insurance, and a few other significant categories.
Do you think retirees have a greater or lesser exposure to inflation?
Image: Mark J Perry
MrFireStation 
I agree 100% with including K-12, Insurance, and Taxes to improve the inflation calculation. In many areas, public K-12 has become untenable due to Marxist infiltration of the public education system. Private K-12 quite often exceeded my house carrying cost, while my children were being raised. My current insurance package including homeowners, earthquake, auto, and umbrella exceeds by house carrying cost.
The Federal Government has been low balling the inflation numbers for decades. However, they do not low ball themselves when it comes time to take more of our money. They don’t even match their low balled inflation calculations when adjusting tax brackets and standard deductions. The tax code is riddled with phaseouts that have never been adjusted for inflation. This is how taxes became most of your readers’ number one household expense, by a lot! @#$%
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Agree – the government definitely low-balls these numbers.
We sent our son to private schools – K-12 & college. Ranged from $10-$30K/year. Once he started college, his tuition was locked in at that rate. Inflation was even higher at public universities.
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More inflation, according to this chart. I don’t need another tv, more toys, another house. I do need healthcare. I can still pay for it as long as Medicare holds up. If it doesn’t, I’ll be inflated like a weather balloon from China, far from where it belongs. Pop!
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Public healthcare around the world is in a crisis given all of this inflation. Countries like UK are just stretching out wait times.
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I’m in touch with a bunch of folks in UK with chronic illness. Being seen by doc can take over a year. Appealing a decline can take several years. Suffering increases when healthcare is nationalized.
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Ouch. The UK NHS is a real mess. Beyond party control & the pandemic impact, too. Been getting worse for decades.
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My friends in the UK told me that overuse of NHS by non-taxpaying illegal immigrants was the main driver behind BREXIT. BREXIT was an attempt to prop up NHS for longer.
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Learning from our friends in UK, and in Canada, we must oppose those who want to nationalize healthcare in the US. It would mean disaster on a much larger scale.
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Completely agree. Medicare & Medicaid already cover about 70% of medical costs in the USA. Significant unfunded liabilities with Medicare already.
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That would be expensive, for sure!
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