In 2020, the Manhattan Institute published the Cost of Thriving Index (COTI). What followed was broad and substantive criticism from folks like Matthew Yglesias at Vox, Mark Perry at the American Enterprise Institute, Michael Strain at AEI, Robert Verbruggen at
First, leave the finest of Lee Iacocca’s K-cars out of this!
Second, your point on transportation is well taken. A 1992 Camry had a MSRP of $20,000, with many paying well above because of demand. A 2023 Camry - bigger, safer with far more airbags, more efficient, faster, and with entertainment and technologies like stability control requiring immense computing power and sensors and pre-collision braking, has a MSRP of $25,000. Like the 1992 Camry is today, many will be in daily service in 2053. Hard to see how a Camry consumer is worse off today than in 1992.
Third, how does he account for many middle class who bought a house in the last 10 years and are enjoying a sub 3% mortgage while benefiting from house price appreciation (same with any owned vehicle)?
First, leave the finest of Lee Iacocca’s K-cars out of this!
Second, your point on transportation is well taken. A 1992 Camry had a MSRP of $20,000, with many paying well above because of demand. A 2023 Camry - bigger, safer with far more airbags, more efficient, faster, and with entertainment and technologies like stability control requiring immense computing power and sensors and pre-collision braking, has a MSRP of $25,000. Like the 1992 Camry is today, many will be in daily service in 2053. Hard to see how a Camry consumer is worse off today than in 1992.
Third, how does he account for many middle class who bought a house in the last 10 years and are enjoying a sub 3% mortgage while benefiting from house price appreciation (same with any owned vehicle)?