[russelluresti]

So, everyone's already pointed out that it's dumb to compare the amount of money you have now to the amount of money you had at the height of a bubble (where that money was unsustainable and over-inflated).

One thing that's missing here, though, is the idea of amount of money to cost ratio.

For example, say you had $1000 in 2007. Now say that, in 2007, a loaf of bread cost $1000. In that year, you had enough money to buy 1 loaf of bread. Now, in 2014, you have $600 (40% less than 2007). But now, instead of $1000, a loaf of bread is $100. Now you have enough money to buy 6 loaves of bread. You technically have less money, but the value of each dollar you have is significantly more. So, are you really "poorer" now?

The issue with just looking at a single number when analyzing economic health is that it will never tell you the whole story. I can have a million dollars and still be in poverty if a gallon of milk costs 2 million.

[Negitivefrags]

> One thing that's missing here, though, is the idea of amount of money to cost ratio.

That isn't missing at all. It's specifically accounted for. See how the graph says "in 2013 dollars". That indicates that they are using inflation adjusted values.