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Economics

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    $\begingroup$ Modern cars are also much safer and far more comfortable. Few people would prefer driving a 1957 car over a modern one, even if it was in top condition: no power steering, no airbags, no cruise control, no AC, an analogue radio, etc. etc. All these improvements are very hard to capture in purchasing power comparisons over time. $\endgroup$
    – Stephan Kolassa
    Commented Aug 17, 2020 at 9:31
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    $\begingroup$ Agreed, but I actually would be happy to delete a lot of the electric frills in post-1970s cars - they are a major source of maintenance issues. However, “lemons” are no longer a concern, which is another hard-to-measure improvement. However, from a spending share perspective, they found that the percentage was largely the same. For houdehold budgeting, that is what matters. $\endgroup$
    – Brian Romanchuk
    Commented Aug 17, 2020 at 12:31
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    $\begingroup$ The cars I have been driving so far have not had any maintenance issues related to the electronics. I may have been lucky. My hunch is that a modern car still needs less maintenance than an older one back then. For budgeting, yes, the share of nominal income is relevant. For "real income", I would not say so. If I spend the same share of my paycheck on cars, but cars have gotten much better, then I would say that my real income in terms of utility has increased. And yes, intertemporal comparisons of utility are hard. $\endgroup$
    – Stephan Kolassa
    Commented Aug 17, 2020 at 12:58
  • $\begingroup$ Lemons are no longer a concern? $\endgroup$
    – john doe
    Commented Aug 17, 2020 at 19:05
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    $\begingroup$ Lemons now are nothing compared to the 1970s for North American built automobiles. $\endgroup$
    – Brian Romanchuk
    Commented Aug 17, 2020 at 19:15