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Forbes Financial Magazine Unemployment Report

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U6 Unemployment

Unemployment Reports

Total Labor Force Unemployed

2013 Unemployment Numbers

Inflation

Text Box:

FORBES FINANCIAL MAGAZINE 2015

100 Years of Inflation

1913-2013

Loosing Half of Your Savings From Inflation in 24 Years

Pay in 1913 Was Less Then 10 Cents an Hour. In 2015 its $10.00 an Hour. Wages increased 10 Cents an Hour Each Year.

Porterhouse Steak 23 Cents a Pound Now  $10.00 a Pound

 

(© 2013 The Forbes Corporation All rights reserved.  This material may not be published, broadcast, rewritten or redistributed without permission.)

 

© 2013 The Forbes Corporation All rights reserved.  This material may not be published, broadcast, rewritten or redistributed without permission.)

March 4, 1913  U.S. Department of Labor Was Signed Into Law by President William H. Taft

FORBES FINANCIAL MAGAZINE 2015

IN 1913 THE DEPARTMENT OF LABOR BECAME PART OF THE PRESIDENTIAL CABINET.

Almost 50 years of campaigning by organized labor for a voice in the Presidential Cabinet finally paid off and the new Department of Labor cabinet was signed into law by President Taft just before he left office.  The new Department of Labor was an indirect product of the Progressive Movement of the early 1900s which promoted the achievement of better working conditions, conservation of natural resources and a many other goals through both private and government action.

 

 

 

 

 

 

 

 

 

http://www.americaslibrary.gov/assets/es/mi/es_mi_detroit_1_e.jpg

IN 1913

A Model T Ford sold for about $550.00 (Runabout)

A Buick Touring Car sold for $1,800.00 (San Francisco)

Women’s Tailored Suits with shirt $30 - $50

20 Cigarettes were15 Cents

The Entire Ford Production Line made 161,772 Cars

Hotel rooms were about $2.00 or $3.00 a week. (SF)

Sonoma CA farms with about 15 Acers were $2000.00

 

In 1914 Ford Auto Workers had a wage increase to about $5.00 a day but before then they averaged about $2.25 an day.

President Taft in 1912 - Image courtesy of the Library Of Congress

In 1913 a person in the lumber industry would work an average of 60 hours a week for about 17 cents an hour.  Many workers at that time worked as much as 66 hours a week.  The average weekly take home pay was anywhere from $10.00-$11.00 a week per person.  Oregon was the first State that enforced a Minimum wage law set at $8.25 per week with 50 hour weeks and 9 hour days.  Up until 1913 there were NO TAXES on wages of any kind but that changed later.

 

These jobs are based on about 55-60 hours each week but there were no employment taxes.

 

Carriage Men: People that drove a horse carriage earned a wage of about 20 cents an hour.

Saw Blade Operators:  Lumber mill workers running the saw earned an average of about 52cents an hour.

Upholsterers:  Furniture upholsterers were paid an average of about 30cents an hour.

Spinners:  Cotton Manufacturing Cotton Spinners18 cents an hour.

Inspectors: Cotton Manufacturing inspection of goods after process 10cents an hour.

Loom Repair: Repair of the loom machine in the cotton mill 20cents an hour.

Waitress:  City facility requiring wait staff for the facility 11cents an hour.

Private Cook:  Private cook for wealthy families 15cents an hour.

 

Mill Workmen Pay With A Place To Stay

Band Sawyers:  California sawmill workers averaged 60 hours a week with a room for a about 41cents an hour.

Sorter:  California sawmill wood sorter averaged 60 hours a week with a room for about 18cents an hour.

 

St Louis Factory Senior Executives

Senior Presidents - Vice President in General Manufacturing averaged about a $1.13 an hour.

Senior Presidents - Vice President in Rope and Twine averaged about $4.17 an hour.

Senior Presidents - Vice President in smelting plants averaged $2.03 an hour.

 

 

 

 

 

 

(© 2013 The Forbes Corporation All rights reserved.  This material may not be published, broadcast, rewritten or redistributed without permission.)

1913 FEDERAL INCOME TAX

GETS SIGNED INTO LAW

TAX RATES FOR 1918 INCREASE

There was no Federal Income TAX until 1913

The ONLY TAXES Collected were from Tariffs on Goods.

In October of 1913 the Revenue Act of 1913 was past.  The rate was set to 1% on net person income above $3000.00 and 6% surtax on income above $500,000.  In 1918 just 5 years later it went up as high as 77% on income over $1,000,000.

 

World War One was from 1914 to 1919.

The US gets into World War One on April 6th 1917.

England intercepted a message from Germany to Mexico, in the message the Germans offered to give Mexico back the land they lost to the US in exchange for becoming allies with Germany in a planed US invasion.  The increase in Income Tax was used to pay for World War One.

The first issuance of a personal income TAX was after the Civil War in 1861.  Ten years later the TAX was repealed.  When we look through history we find that every war put the country in a massive debt and once the war ends there is a downturn in the economy.  This can be expected because the economy has been created around a industry  which contributes short term gain.  The start of the eroding economy of 1914 took several years to appear (end of war 1917) and then going from no income tax to a huge income tax in a few years to pay for the war created an economic drag from 1918-1919 and then the 1920-1921 depression followed.

Economic Recessions

1901

Market Crash

 

1902-1904

Post Market Crash

 

1907

Panic Of 1907

 

1910-1911

 

1913-1914

Drag from 1907

 

1918-1919

After War Drag

 

1920-21

Depression

 

1923-1924

 

1926-1927

 

1929-1933

The Great Depression was from 1929 to 1933 25%unemployment with a further unemployment rate at 15 % for the next 10 years.

 Tax Rate        Over            But Not Over   Tax Rate        Over          But Not Over

 

(© 2013 The Forbes Corporation All rights reserved.  This material may not be published, broadcast, rewritten or redistributed without permission.)

In June of 1938 Franklin D. Roosevelt Signed The Fair Labor Standards Act of 1938

1938

1939

1945

1950

1956

1961

1963

1964

1965

1967

1968

1969

1970

1971

1974

1975

1976

1977

1978

1979

1980

1981

1990

1991

1996

1997

2007

2008

2009

 

$0.25

$0.30

$0.40

$0.75

$1.00

$1.15

$1.25

$1.15

$1.25

$1.40

$1.60

$1.30

$1.45

$1.60

$2.00

$2.10

$2.30

$2.30

$2.65

$2.90

$3.10

$3.35

$3.80

$4.25

$4.75

$5.15

$5.85

$6.55

$7.25

 

In 1933 the average wage was about $0.25 an hour.  Five years later President Roosevelt signed a bill for minimum wage.

 

On Saturday, June 25, 1938, a landmark law in the Nation's social and economic development was the Fair Labor Standards Act of 1938 (FLSA). In its final form, the act applied to industries whose combined employment represented only about one-fifth of the labor force. In these industries, it banned oppressive child labor and set the minimum hourly wage at 25 cents, and the maximum workweek at 44 hours.

 

In a casual conversation President Roosevelt had said to not listen to any executive complaining about the minimum wage of $0.25 an hour or $11.00 a week when that executive is making $1,000.00 a week.

 

In 1930 Franklin D. Roosevelt created a program called FICA and this added a 1% tax to people with income over $1,400.00 a year.

Minimum

Wage

History

California Factory showing diffusion battery filter presses, carbonation tanks, slicing machines, and beet scales.

1913

1913

In 1913 factory pay ranged from  .07 cents an hour to as much as .50 cents an hour depending on the type of work performed but the average pay was around .17 cents an hour.

Filling, weighing, and sewing sacks of granulated

sugar in a beet sugar factory

 

In 1913 the Worlds Total Car Production Was 606,124 Vehicles and the US produced 485,000

AVERAGE COST OF A FORD MOTOR CAR IN 1913 WAS $550.00

The Average cost of a Ford Focus Sedan in 2013 is about $16,000.00

In 1913 there was a total of about 606,124 cars manufactured in the world.

In 2013 there is a total of about 60,617,000 cars manufactured in the world.

In 1913 the US produced  about 80% of all cars in the world.

In 2013 the US produces about 4.9% of the cars in the world.

In 1913 there were 40 Car Manufacturers in Detroit.

       In 2013 there are now around 129 Car manufacturers in the world.

A Ford Fusion cost 29 times more then a Model T from 1913.

http://www.worldometers.info/cars/

 

 

 

Text Box: Model T Ford

Ford Fusion

 

(© 2013 The Forbes Corporation All rights reserved.  This material may not be published, broadcast, rewritten or redistributed without permission.)

The Effects of Home Inflation

Over 100 Years

The effects of inflation on a home out pace in many cases the inflation rate of household items and food in the same location by a vast percentage.  In an example of this we show a home sold in 1913 on Cerritos Avenue located in Ingleside San Francisco.  In this case most of the homes located on Cerritos sold for an average price of $8,000 in 1913.  100 Years later this same home sold for sold for $2,117,000.  This home was a 5 bedroom home with 3 baths of 2,880 Square Feet.

 

You can also see as inflation occurs and property taxes rise it creates an incentive to sell some of the properties acreage of a home to try and off set local town tax increases.  Here we can see the trees have been removed on the right side of the home and another home has been built in extremely close proximity to one another.

Ingleside San Francisco

This Home Sold For $8,500 in 1913

Ingleside San Francisco

This Home Sold For $2,117,000

100 Years Later

Capturing Inflation With Real Examples Over Time

 

(© 2013 The Forbes Corporation All rights reserved.  This material may not be published, broadcast, rewritten or redistributed without permission.)

Inflation of Goods Based on 100 Years of US CPI Information From 1913 to 2013

The CPI represents all goods and services purchased for consumption by the reference population (U or W) BLS has classified all expenditure items into more than 200 categories, arranged into eight major groups. Major groups and examples of categories in each are as follows:

· FOOD AND BEVERAGES (breakfast cereal, milk, coffee, chicken, wine, full service meals, snacks)

· HOUSING (rent of primary residence, owners' equivalent rent, fuel oil, bedroom furniture)

· APPAREL (men's shirts and sweaters, women's dresses, jewelry)

· TRANSPORTATION (new vehicles, airline fares, gasoline, motor vehicle insurance)

· MEDICAL CARE (prescription drugs and medical supplies, physicians' services, eyeglasses and eye care, hospital services)

· RECREATION (televisions, toys, pets and pet products, sports equipment, admissions);

· EDUCATION AND COMMUNICATION (college tuition, postage, telephone services, computer software and accessories)

· OTHER GOODS AND SERVICES (tobacco and smoking products, haircuts and other personal services, funeral expenses).

 

 

 

 

(© 2013 The Forbes Corporation All rights reserved.  This material may not be published, broadcast, rewritten or redistributed without permission.)

-3%=$97.00

-3%=$94.09

-3%=$91.26

-3%=$91.23

-3%=$88.52

-3%=$85.87

-3%=$83.29

-3%=$80.79

-3%=$78.37

-3%=$76.02

-3%=$73.74

-3%=$71.53

-3%=$69.38

-3%=$67.30

-3%=$65.28

-3%=$63.32

-3%=$61.42

-3%=$59.58

-3%=$57.79

-3%=$56.05

-3%=$54.37

-3%=$52.74

-3%=$51.16

-3%=$49.62

-3%=$48.13

-3%=$46.69

-3%=$45.29

-3%=$43.93

-3%=$42.61

-3%=$41.33

-3%=$40.09

-3%=$38.89

-3%=$37.72

-3%=$36.59

-3%=$35.49

-3%=$34.43

-3%=$33.40

-3%=$32.39

-3%=$31.42

-3%=$30.48

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Year 11

Year 12

Year 13

Year 14

Year 15

Year 16

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Year 29

Year 30

Year 31

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Year 33

Year 34

Year 35

Year 36

Year 37

Year 38

Year 39

Year 40

-3%=$29.57

-3%=$28.68

-3%=$27.82

-3%=$26.98

-3%=$26.61

-3%=$25.39

-3%=$24.63

-3%=$23.89

-3%=$23.17

-3%=$22.47

-3%=$21.80

-3%=$21.15

-3%=$20.51

-3%=$19.89

-3%=$19.29

-3%=$18.71

-3%=$18.15

-3%=$17.61

-3%=$17.08

-3%=$16.57

-3%=$16.07

-3%=$15.59

-3%=$15.12

-3%=$14.67

-3%=$14.23

-3%=$13.80

-3%=$13.39

-3%=$12.98

-3%=$12.59

-3%=$12.22

-3%=$11.85

-3%=$11.49

-3%=$11.15

-3%=$10.81

-3%=$10.49

-3%=$10.18

-3%=$9.87

-3%=$9.57

-3%=$9.00

-3%=$8.73

Year 41

Year 42

Year 43

Year 44

Year 45

Year 46

Year 47

Year 48

Year 49

Year 50

Year 51

Year 52

Year 53

Year 54

Year 55

Year 56

Year 57

Year 58

Year 59

Year 60

Year 61

Year 62

Year 63

Year 64

Year 65

Year 66

Year 67

Year 68

Year 69

Year 70

Year 71

Year 72

Year 73

Year 74

Year 75

Year 76

Year 77

Year 78

Year 79

Year 80

Year 81

Year 82

Year 83

Year 84

Year 85

Year 86

Year 87

Year 88

Year 89

Year 90

Year 91

Year 92

Year 93

Year 94

Year 95

Year 96

Year 97

Year 98

Year 99

Year 100

Year 101

Year 102

Year 103

Year 104

Year 105

Year 106

Year 107

Year 108

Year 109

Year 110

Year 111

Year 112

Year 113

Year 114

Year 115

Year 116

Year 117

Year 118

Year 119

Year 120

-3%=$8.47

-3%=$8.21

-3%=$7.97

-3%=$7.73

-3%=$7.50

-3%=$7.27

-3%=$7.05

-3%=$6.84

-3%=$6.64

-3%=$6.44

-3%=$6.24

-3%=$6.06

-3%=$5.87

-3%=$5.70

-3%=$5.53

-3%=$5.36

-3%=$5.20

-3%=$5.04

-3%=$4.89

-3%=$4.60

-3%=$4.46

-3%=$4.33

-3%=$4.20

-3%=$4.07

-3%=$3.95

-3%=$3.83

-3%=$3.72

-3%=$3.61

-3%=$3.50

-3%=$3.39

-3%=$3.29

-3%=$3.31

-3%=$3.00

-3%=$2.91

-3%=$2.83

-3%=$2.74

-3%=$2.66

-3%=$2.58

-3%=$2.50

-3%=$2.43

-3%=$2.35

-3%=$2.28

-3%=$2.21

-3%=$2.15

-3%=$2.08

-3%=$2.02

-3%=$1.96

-3%=$1.90

-3%=$1.84

-3%=$1.79

-3%=$1.73

-3%=$1.68

-3%=$1.63

-3%=$1.58

-3%=$1.53

-3%=$1.49

-3%=$1.44

-3%=$1.40

-3%=$1.36

-3%=$1.32

-3%=$1.28

-3%=$1.24

-3%=$1.20

-3%=$1.17

-3%=$1.13

-3%=$1.10

-3%=$1.06

-3%=$1.03

-3%=$1.00

Year 121

Year 122

Year 123

Year 124

Year 125

Year 126

Year 127

Year 128

Year 129

Year 130

Year 140

Year 141

Year 142

Year 143

Year 144

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Year 146

Year 147

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Year 151

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Year 153

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Year 156

Year 157

Year 158

Here is what happens to your money with an inflation rate running at 3% per year as an average rate for over 100 years.

We show what $100.00 will be worth but it can be $100,000 or $1,000,000.  Take a look below and see how fast your savings of a paper currency gets eroded.  The long term average inflation rate from 1913-2013 was 3.22%.  We used a 3% figure which was lower then the 100 year average and found that in 20 years time you will lose half of your savings from inflation.

Losing Half Your Savings

In 24 Years From Inflation At 3%

 

(© 2013 The Forbes Corporation All rights reserved.  This material may not be published, broadcast, rewritten or redistributed without permission.)

Food Inflation Over The Last 100 Years

Seafood Hits All Time Highs

Its not surprising to some of us who study inflation that price increases over the last 100 years runs at an average of 3.22% increase each year however when you average many products together it sometimes blinds you to massive market price hicks like seafood.  The best way to get a real feel of inflationary increases in your food prices is to review the chart below on many of the major food staples many people in the US consume.  People that require seafood because of diet or have opted for a more healthy diet using seafood as a substitute for meats have now seen a major drain on there wallet.  Haddock has an 11,328 % increase in just 100 Years. 

 

(© 2013 The Forbes Corporation All rights reserved.  This material may not be published, broadcast, rewritten or redistributed without permission.)

 

Food Prices Increase Over 100 Years

To get a better perspective on how quickly food prices sore over the lifetime of a person just look below and notice how cheap products were in 1913.  You can hardly see the Green bars in the chart below because many products had sold for just pennies (less then 50 cents). In 2013 most products are now purchased in dollars.

 

These are massive increases and this means that a person can not live off of their savings from pay and you must work all your life to counteract inflationary effects.  Many people live paycheck to paycheck because your savings are eroding from the Federal Reserve printing money at near zero interest rates.  You need a job that continues to dramatically gain in wage scale beyond the inflation rate but even that wont help you save combat high inflation. 

 

(© 2013 The Forbes Corporation All rights reserved.  This material may not be published, broadcast, rewritten or redistributed without permission.)

Below Are Actual 1913 Newspaper Clippings

Step Back In Time To 1913 And Compare

Some of the items below were from Boston MA but you can get an idea of just how cheap products were to live on back in 1913.  Another interesting thing to keep in mind is that big corporations contaminated food with pesticides and GMO in the late century and the food back in 1913 had little of that and everything was open range and grass feed. 

 

Now in late 2013 you will need to pay much more for items being labeled as free range and GMO free.  There were no steroids back then so when you compare prices to 2013 we really need to look at products in 2013 that are natural and range free and no steroid to get an actual cost of inflation but that is not what the US government is using in its measurement.

 

(© 2013 The Forbes Corporation All rights reserved.  This material may not be published, broadcast, rewritten or redistributed without permission.)

FOOD PRICES IN U.S. DOUBLED WITHIN 7 YRS

Washington. — The family food budget in February was twice the sum people were spending for other types of articles of non-food according to Department of Labor statistics.

During the year ending last February in the USA sugar increased in price 76 per cent. Potatoes went over the top to the tune of 275 percent increase since February, 1913.

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Item

Average Cost in 1913

Average Cost Small Car

in 2013

Average Inflation Rate Per Year

Number of Times Increased

Flat Compounded Inflation Rate Percentage

1913 K-D Touring Car

$6,000.00

$17,000

0.0183333333333333

1.83333333333333

183.333333333333

Matheson

$3,000.00

$17,000

0.0466666666666667

4.66666666666667

466.666666666667

Ford Model T

$550.00

$17,000

0.299090909090909

29.9090909090909

2990.90909090909

Metz

$445.00

$17,000

0.367777777777778

36.7777777777778

3677.77777777778

Item

Average Cost in 1913

Average Cost in 2013

Average Inflation Rate Per Year

Number of Times Increased

Flat Compounded Inflation Rate Percentage

Average National Home

$5,800.00

$255,000

0.429655172413793

42.9655172413793

4296.55172413793

Ingleside San Francisco

$8,500.00

$2,117,000

2.48058823529412

248.058823529412

24805.8823529412

Food Item Per Pound

Unless Marked Otherwise

Average Cost in 1913

Average Cost in 2013

Average Inflation Rate Per Year

Number of Times Increased

Flat Compounded Inflation Rate Percentage

Bacon

$0.254

$4.407

0.16

16.35

1635.04

Bread per loaf

$0.056

$1.422

0.24

24.39

2439.29

Butter

$0.409

$3.501

0.08

7.56

755.99

Cheese

$0.222

$5.832

0.25

25.27

2527.03

Chuck Roast

$0.149

$3.690

0.24

23.77

2376.51

Coffee

$0.299

$5.902

0.19

18.74

1873.91

Eggs Per Dozen

$0.373

$1.933

0.04

4.18

418.23

Flour

$0.033

$0.524

0.15

14.88

1487.88

Fresh Milk, per Gallon

$0.356

$3.465

0.09

8.73

873.31

Ham

$0.251

$2.693

0.10

9.73

972.91

Pork Chops

$0.187

$3.465

0.18

17.53

1752.94

Potatoes

$0.016

$0.627

0.38

38.19

3818.75

Rice

$0.086

$0.715

0.07

7.31

731.40

Round Steak

$0.205

$5.074

0.24

23.75

2375.12

Sirloin Steak

$0.238

$5.705

0.23

22.97

2297.06

Sugar

$0.058

$0.683

0.11

10.78

1077.59

Fresh Red Salmon

$0.150

$7.000

0.46

45.67

4566.67

Fresh Eastern Smelts

$0.100

$5.000

0.49

49.00

4900.00

Fresh Halibut

$0.180

$17.000

0.93

93.44

9344.44

Haddock

$0.070

$8.000

1.13

113.29

11328.57