"$50K in 1960 is worth a heck of a lot more than $500K today. If that was your house you would now be poorer."
I make my explanation easy to undestand, even kinder can. Lets say there are 2 people (QTess & AMrich)
Since 1960 QTess has been renting & never own a house. Today QTess has no asset wealth.
Since 1960 AMrich bought a house worth $50k. Today AMrich has an asset wealth worth $500k.
That's $500k difference in wealth ownership. With that money today (thanks to $50k house AMrich bought in 1960) he can live comfortably in retirement village with $500k after he sold the house.
But QTest will have a hard life in old age retirement village. Because he doesn't have $500k that AMrich has.
