The point is that the inflation of the 1970s meant prices skyrocketed but wages did not. There's the problem right there.I have used this several times over the years to illustrate wages vs. inflation in America.
In 1977, my parents bought a 3 bdrm home. and happen to also bought a 1977 Chevy Malibu. My Father earned a little over $10 an hour in a factory.
Price of the home -- $26,000
Price of the 1977 Malibu - $4,500
His wages - $400 a week.
In 2015, that same house where I live will cost you about $110,000
A new 2015 Malibu is about $22,000.
Earnings for a factory worker in this area is about $12 an hour.
Get it?