So in real terms you are saying that your real income has risen 20 times since 1981 i.e. you are now able to buy the same basket of good and services that you bought in 1981 20 times over?
Yes.
That's amazing but does this represent what Mr average can buy now compared to what he bought in 1981?
Is Mr average really 20 times better off now that he was in 1981?
If “Mr. average” was around in 1981 and, since then, had made good choices in terms of career, savings, investing, and, most importantly spending vs. frugality, then, yes, he could be 20 times better off than he was in 1981.
And, no, I didn’t work in a career path that was a big money-maker. I was a high school teacher. But I lived frugally, invested and saved wisely, and now, retired, my income is greater than it was when I was working. I drive the same car I did back in the 1980s. I shoot the same cameras I did in the 1970s. Except for my first house which I bought on the GI Bill, I have never taken on debt. So, it is possible.