Are These the Good Old Days?

Transcript of Podcast Episode 267

Hello this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, are these “the good old days?”

You don’t have to look far to find bad news. When it comes to TV news, as is often said, “if it bleeds it leads.” Political polarization in the USA, war in the Middle East, and natural disasters all over the world. Are we witnessing the end of civilization?

A recent article in Advisor Perspectives by Rick Kahler tries to address some of these issues by looking at where we stood a few decades ago.[1] And he reaches a startling conclusion: In spite of all you may hear, these are actually the best of times.

Kahler relies heavily on research done by Full Stack Economics, a popular blog by Timothy B. Lee. It published a set of statistics trying to make an important point: On average, we are living more comfortably than our parents ever did.

Among the statistics cited in the report:[2]

• We’re eating a lot more fresh fruit and veggies than we used to. According to Full Stack, “Stores today stock about eight times as many blueberries, six times as many mangoes and limes, and four times as many pineapples as they did in the late 1980s.”
• People are spending a smaller percentage of their income on food and clothing. It was 15 percent in 1990. Today it’s 11 percent.
• Cars are getting safer. The number of highway fatalities per mile is less than one third of what it was in 1990.
• More homes have modern appliances. Dishwashers, washing machines, etc. are much more affordable today.
• Every age group is less vulnerable to heart disease. The death rate per 100,000 people was 16 percent lower in 2021 than it was in 1990.
• More people are surviving cancer. This is especially true for stomach, breast, lung and prostate cancer.
• Despite the cost, a bigger percentage of Americans have health insurance. This is partially due to the expansion of Medicaid and the Children’s Health Insurance Program.
• Parents are spending more time with their children. There is a belief that the pressures of modern-day living mean that parents are spending less time with their kids. Statistics indicate the opposite: Parents spend more time with their children than they did 30 or 40 years ago. And finally…
• Batteries keep getting cheaper: Most notably with lithium-ion batteries. The cost has gone from $1,220 per kilowatt hour in 2010 all the way down to $132 per kilowatt hour in 2021.

Some other tidbits: On average, even after COVID, Americans are living almost five years longer than they were in 1980.[3] And the poverty rate, which was 13 percent in 1980, has fallen to 11.5 percent as of 2022.[4] Also, according to Statista, violent crime reported in the US declined substantially, by nearly one third from 1990 to 2022. Violent crime remains at too high a level but the thirty-year trend has been favorable.[5]

There are, of course, some negatives, like the cost of college and health care. But overall, the long-term trend is a good one.

So, what does this mean for you? For one thing, maybe you should take another look at your retirement. There’s a good chance you’re going to live longer than you expect!

It always pays to remember that every situation is different, and that you may need help to get through the long list of alternatives you may have. Your Security Mutual Life insurance advisor can help you sort through your options and help get the process started. Your advisor will assemble your team and coordinate with your attorney and tax professional to review your situation to determine the plan and strategies that are appropriate for you and your family.

[1] Kahler, Rick. “Are We Living in The “Good Old Days”? advisorperspectives.com https://www.advisorperspectives.com/articles/2023/11/29/living-good-old-days-rick-kahler?hsid=27993992&_hsmi=284512257&_hsenc=p2ANqtz-9tjElSeMf7IpvsqdUDl_CgI_u_jDBecsr1JjknL5RwGzvmQSrgmGihjn64ZB3TmSPx8Ig4U_Hze3dOLb_s3NHa-jFWrQ (accessed January 9, 2024)

[2] Lee, Timothy B. “24 charts that show we’re (mostly) living better than our parents.” Fullstackeconomics.com https://www.fullstackeconomics.com/p/24-charts-that-show-were-mostly-living-better-than-our-parents (accessed January 10, 2024)

[3] Kahler, Rick. “Are We Living in The “Good Old Days”? advisorperspectives.com https://www.advisorperspectives.com/articles/2023/11/29/living-good-old-days-rick-kahler?hsid=27993992&_hsmi=284512257&_hsenc=p2ANqtz-9tjElSeMf7IpvsqdUDl_CgI_u_jDBecsr1JjknL5RwGzvmQSrgmGihjn64ZB3TmSPx8Ig4U_Hze3dOLb_s3NHa-jFWrQ (accessed January 9, 2024)

[4] Shrider, Emily A & Creamer, John.. “Poverty in the United States: 2022.” Census.gov https://www.census.gov/library/publications/2023/demo/p60-280.html (accessed January 9, 2024)

[5] Statista. “Total violent crime reported in the United States from 1990 to 2022.” statista.com https://www.statista.com/statistics/191129/reported-violent-crime-in-the-us-since-1990/ (accessed January 10, 2024)

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