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01 / 05
How the Cost of Light Fell by a Factor of 500,000

Blog Post | Adoption of Technology

How the Cost of Light Fell by a Factor of 500,000

Light has turned from something too precious to use into something everyone can afford.

As the BBC recently pointed out, our prehistoric ancestors needed to gather and chop “wood 10 hours a day for six days… [in order to] produce 1,000 lumen hours of light… That is the equivalent of one modern light bulb shining for just 54 minutes, although what you would actually get is many more hours of dim, flickering light instead.” 

Even when better alternatives, such as candles, became available, it was still prohibitively expensive to light the house for the common person. Further, the first candles were produced from animal fat and not from the clean burning paraffin wax we use today, producing a flickering smelly flame. 

It wasn’t until the 18th century that spermaceti candles, which were made from a waxy substance found in the head cavities of sperm whales, and were much less time-consuming to produce, became more readily available. But even then, reading light remained very expensive (not to mention terminal for the whales). George Washington calculated that five hours of reading per night cost him £8 yearly – well over $1,000 in today’s dollars.

The light bulb changed everything. 

By 1900, 60 hours of work could provide 10 days of light. The light bulbs would burn 100 times as bright as a candle, steadily, and inodorously. By 1920, 60 hours of work could already pay for 5 months of stable light. By 1990, that increased to 10 years of light. Today? 52 years. 

And progress has not stopped yet. LED lights continue to become cheaper and cheaper. 

The amount of labor that once bought 54 minutes of light now buys 52 years of light. The cost has fallen by a factor of 500,000 and the quality of that light has transformed from unstable and risky to clean, safe, and controllable. 

Like a myriad of other products we take for granted today, light has turned from something too precious to use into something everyone can afford. 

 

MSN | Wealth & Poverty

It Turns Out despite Avocado Toast, Millennial Wealth Is Booming

“A new report from the Center for American Progress, a left-leaning think tank, looked at how wealth changed for different age cohorts from 2019 to 2023 by analyzing data from the Federal Reserve’s Distributional Financial Accounts.

The analysis found good news for the much-beleaguered millennial generation: Their wealth grew at a historic clip.

Per CAP’s analysis, from the end of 2019 to the end of 2023, the average wealth of households under 40 grew by 49% — a $85,000 increase, to $259,000 from $174,000. The analysis said that rate of rapid wealth growth had never happened before in the data series’ history, and it came after wealth growth remained relatively stagnant for young Americans prepandemic.

Here’s the whopper: Wealth gains were even higher for just millennials, who were 23 to 38 in 2019; their wealth doubled from the end of 2019 to 2023.”

From MSN.

The Economist | Wealth & Poverty

Generation Z Is Unprecedentedly Rich

“In America hourly pay growth among 16- to 24-year-olds recently hit 13% year on year, compared with 6% for workers aged 25 to 54. This was the highest ‘young person premium’ since reliable data began (see chart 3). In Britain, where youth pay is measured differently, the average hourly pay of people aged 18-21 rose by an astonishing 15% last year, outstripping pay rises among other age groups by an unusually wide margin. In New Zealand the average hourly pay of people aged 20-24 increased by 10%, compared with an average of 6%.

Strong wage growth boosts family incomes. A new paper by Kevin Corinth of the American Enterprise Institute, a think-tank, and Jeff Larrimore of the Federal Reserve assesses Americans’ household income by generation, after accounting for taxes, government transfers and inflation. Millennials were somewhat better off than Gen X—those born between 1965 and 1980—when they were the same age. Zoomers, however, are much better off than millennials were at the same age. The typical 25-year-old Gen Z-er has an annual household income of over $40,000, more than 50% above baby-boomers at the same age.”

From The Economist.

BusinessMirror | Poverty Rates

PHL Could Hit Single-Digit Poverty Years Ahead of Schedule

“Better labor market conditions and slower inflation in the country could turn the administration’s single-digit poverty incidence aspirations into a reality two years ahead of schedule.

This was according to the latest Macro Poverty Outlook for the Philippines, released by the World Bank on Monday. It estimated that poverty incidence in the country could decrease to 9.3 percent in 2026 from 12.2 percent this year and 17.8 percent in 2021.”

From BusinessMirror.