Those of you who read Don Boudreaux over at CafeHayek know that he often gives evidence that the average American is way better off than his/her counterpart in the 1960s, 1970s, and 1980s.
This is my story comparing now to the 1960s.
I was talking to a California friend recently and we were both belly-aching about state and local governments’ assaults on Californians’ freedom. The biggest ones right now are the lockdowns. (Parenthetical note: Governor Newsom’s new purple standard is absurd. It treats the whole of a county the same even though there’s incredible heterogeneity within a county. Monterey County’s average number of cases over the last 7 days is 15.6 per 100,000 residents, putting us in the purple zone. But Monterey Peninsula’s 7-day average is 3.6, which would allow us to jump up 2 zones to orange.) But even when the lockdowns end, California is one of the least economically free states in the union.
Back to our conversation. My friend was saying that he wants to move to a freer state and is considering New Hampshire. New Hampshire has no income tax and no sales tax and much less regulation. My immediate reaction, though, was to remind him how cold it is and how long the winter lasts. I grew up in rural Manitoba, where, I pointed out, it sometimes hit 40 below and at that temperature it didn’t matter whether you were talking Fahrenheit or Centigrade. I told him that in 20+ years of living in Manitoba I never got used to the cold. I was ready for winter weather to end by mid-February but it usually went to late March and occasionally early April.
Then I caught myself. I pointed out that people in Canada have it so much better than their counterparts of 50+ years ago: they can fly to Florida or Mexico for a week or even 2 weeks in late January or early February and that gives them a much-needed break from the winter. And many of them do. By contrast, when I was growing up, if someone suggested flying down south for even a week, it seemed no more plausible than flying to the moon. Maybe our family could have afforded it, but then we would have had to give up Christmas and about 2 years of my father’s saving for his 3 kids to go to college. (2 of us did.) My Uncle Fred and Aunt Jamie, however, typically went to Nassau for a week or two in the winter. He was a doctor and could easily afford it.
The world has changed.
A big part of the reason is that real incomes have gone up a lot. Another reason is that real air fares have plummeted, due both to improved technology and to massive deregulation. I pointed out to my friend how lower air fares have affected stag parties for guys getting married. I remember going to one for a friend in 1982 or 1983. Everyone there lived within 20 miles of the groom. There were drinks and food and a stripper. (That was actually the only stag party I ever went to and even though I found the stripper attractive, that’s not my idea of a good time. When she was getting dressed I asked her about the economics of her business and how she dealt with personal security.)
Today, guys will have a stag party in Vegas and people will fly in from other states.
Maybe stag parties for you, as for me, aren’t your thing. Then consider this. I taught at the University of Rochester Graduate School of Management from 1975 to 1979. I became friends with one of my students, who started dating, after she graduated, one of my colleagues. In the fall of 1980, Jeff, my colleague, called me to tell me that Laurie had died of cancer. I called an airline to price going back fro the funeral. I still remember the stunning air fare: $800 round trip. I could do it, but I was spending more each month than I was earning at Santa Clara University. So I would need to take $800 out of my low and diminishing savings. I decided not to. Do I regret the decision? No. But I regret that air fares weren’t lower. To put that $800 in perspective, it would be $2,450 today. Now I realize that the CPI overstates inflation by about one percentage point a year. But that would still make it about $1,400 today.
The world has changed and, economically, much for the better.
Back to the weather. If my wife would go for it, I could live in many states in the union and do fine by flying out for a few weeks here and there during the bad-weather parts. I would even consider South Dakota.
READER COMMENTS
Jon Murphy
Sep 23 2020 at 10:54pm
It is, of course, easier to leave NH when the bad weather comes, but even if one wants to stay, it’s much easier to weather the winter. NH winters can get cold, but we’ve figured it out. Roads tend to be cleaned easily. Many homes are relatively cheap to heat, especially compared to the 60s. You have lots of warning before big storms hit to stock up.
Phil H
Sep 24 2020 at 1:57am
I completely agree with this. On the other side, tropical places are much nicer to live in as well. I live in a subtropical Chinese city, and I have spent a year here without aircon, which was… sweaty. Now AC is ubiquitous, mosquito spraying is regular, and flights to the snows are cheap when you want them.
Lawrence
Sep 24 2020 at 9:05am
In any analysis of government-imposed costs, it’s important to remember that property taxes in New Hampshire are astronomical. So if you are a retiree with a low income and make few purchases, you are penalized if you like to live in a nice home. From my experience visiting there, nice and affordable housing is rare. Most of the dwellings are rather disappointing.
Jon Murphy
Sep 24 2020 at 10:03am
You think so? My experience living in New Hampshire was very different. I lived in a nice, 2-bedroom apartment in downtown Concord for 5 years. Everything was included. Rent was $1,000 a month.
It is true property taxes are very high. As are vehicle excise taxes. The state always gets its money
Michael Pettengill
Sep 25 2020 at 6:03am
which years? NH over built apartments then over built houses so apartments became doubly cheap, but under building both has made rentals dear. The lack of construction forced many career changes so now there’s a worker shortage and cost cutting has cut the training pipeline.
Jon Murphy
Sep 25 2020 at 10:49am
2011-2016
Jon Murphy
Sep 25 2020 at 12:51pm
I should mention my experience was primarily limited to the cities. I didn’t live go too often to the more rural areas of New Hampshire. I lived in Concord and most of my friends were in Manchester, Nashua, Salem, etc. So it could simply be a rural/urban divide
Alan Goldhammer
Sep 24 2020 at 9:12am
I think there is a typo in this statement or it is the shortest academic posting of all time. Otherwise, it’s a good recap of how one aspect of life is much better these days.
David Henderson
Sep 24 2020 at 9:45am
LOL. Thanks, Alan. Correction made.
Nick
Sep 24 2020 at 12:00pm
“When she was getting dressed I asked her about the economics of her business and how she dealt with personal security.” Classic Henderson 🙂
David R. Henderson
Sep 25 2020 at 9:34am
LOL.
Patrick T Peterson
Sep 24 2020 at 11:59pm
LOL
I think I recognize one of those friends!
Well done.
Winter clothing is better and cheaper now than in the 60s and 70s too!
And vehicles are VASTLY better quality now. I remember the pains of trying to start our cars in subzero weather in Chicago – taking off the air filter housing and squirting ether in the carburetor to get it going – IF, IF the battery was good enough to turn the engine over. LOTS of jump starts back then to get the cars going. These days? Most people don’t even know what a carburetor is, and “jumps” are far less needed.
David R Henderson
Sep 25 2020 at 9:33am
Good points, Patrick.
Especially about cars. I remember being picked up at my friend Clancy’s place by another friend and his sister, Penny, in a VW Beetle. It was less -20 degrees F outside and the car hadn’t noticeably heated up between when they had left their place 20 minutes earlier and when they got to Clancy’s. I still remember Penny’s line and Clancy’s riposte.
Penny: I fart warmer than this.
Clancy: Ah, the benefits of attending a Manitoba finishing school.
Patrick T Peterson
Sep 25 2020 at 9:57am
LOL
MarkW
Sep 26 2020 at 7:14am
People really have no idea how much better modern cars are than when I was a kid in the 1970s. My parents had the typical rear-wheel drive station wagons of the era. Compared to my current Subaru Outback wagon/SUV it’s crazy. The new car is much quieter, more reliable, much safer, and much more comfortable (the old wagon had a front bench seat whose only adjustment was backward and forward). The new car will last probably twice as many miles (and use half as much gas per mile doing it), can handle some fairly hairy off-road conditions, is faster than a 70s-80s Corvette, and is so good in the winter that we sometimes look for unplowed snow to drive in just because. And the price? The inflation calculator says the constant price was just a little more than the 1973 Plymouth wagon my parents had (if we’d gotten a less fancy version of the Subaru, the adjusted price would be lower than the old wagon)
And winter outdoor activities are so much better and more varied now. As mentioned, major advances have been made in clothing, but my first pair of downhill skis (used — new ones were too expensive) were made of wood, the boots laced up, and the bindings <a href=”https://en.wikipedia.org/wiki/Cable_binding”>did not release!</a>. Obviously there were no such thing as a snowboard (which I now prefer over skiis). And because of high airfares, we drove from Chicago (through the night and often enough through bad winter conditions) to ski in Colorado. Snowshoes were still traditional Indian-style (wood frames, gut webbing) — but that didn’t matter since we didn’t have any or know anybody who did. Now it’s one of things my wife and I do most often when there’s enough snow. The most recent winter activity I’ve taken up is riding a fat bike. Needless to say, fat bikes had not been invented when I was a kid (nor, for that matter, had mountain bikes).
And we do generally hop on a plane a couple times in the winter and early Spring and go to an island or somewhere to hike in the desert. My parents never did anything like that back then — airfare was far too expensive.
Michael Pettengill
Sep 25 2020 at 4:35am
I’ve lived in NH for 40 years, and NH taxes are very high unless you have a high income from another State. If you run a business, you have the business enterprise taxes which funds half of government, property taxes and enjoyment taxes the rest. Or you work at low wages and property taxes are high, but maybe hidden in rent. Or the schools are crappy, as in leaky roofs and such.
And covid mandates are almost draconian, but that’s in an effort to get the high income Massachusetts workers living in NH to go out and spend their income at all the taxed enjoyment businesses in NH at risk of going under.
NH crafts laws to exclude young people, not rich enough, young families, not rich, but worse, extremely costly kids, but middle age wealthy professionals with incomee from outside NH are very welcome.
But be prepared to pay all the costs of new infrastructure in a new lot to build a new home. Can’t do it by taxing those who came to NH to cut taxes that pay for infrastructure.
Hint, don’t plan on using the Internet because Pai argues a few hundred homes in Nashua that got FiOS before Verizon cut costs by selling off all its rural customers means NH has great Internet. Elon Musk might solve that with Starlink – thank you Calllifornia for attracting an African American illegal immigrant and fixing his status so he became a multi billionaire in 25 years. NH doesn’t create billionaires. Not since the 19th century. Creating rich industrialists costs too much, and its cheaper to import them, lured with “no taxes” slogans.
And coming from central Indiana, NH weather is mild, and we have all the seasons.
Tom DeMeo
Sep 25 2020 at 9:59am
The argument that the economy provides more raw value to consumers is undeniable. This comes at the price of added complexity and coordination costs. Even for those of us that are well suited to handling it, those added burdens can feel quite weighty at times. So, do we get to have and do more, sure.
Does it feel worth it? For the first time, I’m not so sure. Now, when I get something new or do something new, I feel like something else has to go. I can’t keep adding more.
Floccina
Sep 25 2020 at 5:23pm
I’d love to hear what she said.
Also Gainesville FL, where I live is warm, has a good intellectual atmosphere due to the huge University of Florida being here, real-estate is relatively cheap. The summers are oppressively hot but you can travel in the summer, it is ethnically and intelectiually diverse due to being a Southern (conservatives) University (liberals) town in Florida (immigrants like it warm plus Cubans and other Hispanics coming from south FL). I’d love have you move here.
Floccina
Sep 25 2020 at 5:29pm
I forgot to say no income tax.
David Henderson
Sep 26 2020 at 2:25pm
You wrote:
I don’t remember the number she said she was paid. My dim memory is that it was about $100 for 45 minutes, but I can’t vouch for that.
What I do remember better is what she answered about personal security. She said that her boyfriend was out in the car and if either (1) it seemed to be taking too long or (2) he got some kind of signal–I can’t remember what–he would come in.
Oh, and thanks for welcoming me. That would be a tough sell for my wife.
Floccina
Sep 29 2020 at 10:56am
Thanks David.
Comments are closed.