Re: Now it's $4 per gallon......of milk

On Sat, 02 Jun 2007 08:19:07 -0700, Offbreed
<offbreed_106@xxxxxxxxxxx> wrote:

Robert Sturgeon wrote:
On Fri, 01 Jun 2007 20:11:07 -0700, "editor@xxxxxxxxxxx"
<editor@xxxxxxxxxxx> wrote:

The dollar is worth-less; that's all this reflects. That's been going
on for 30+ years now in America; in 1977 or 1978, Ford really did
advertise full-size Fords with automatic transmission, power brakes,
power steering, and V-8 engine for well under $5,000 - less than a
quarter of what their modern version, the Crown Victoria, now runs.
And how much less of the mortgage payment on a three-bedroom house
does the dollar now buy than it did then - on the same house.

About that car... I have a 2004 Mercury Grand Marquis. It
is a MUCH better car than anything any U.S. auto company was
building in 1977 or 8. But they cost over $30,000 new, so
I'd say the true cost inflation figure for cars is about
triple in 30 years, about 3.75% per year. Of course that
depends on just how much better the cars are now.

Gas was about $0.27 in the 50's (where's the "cent" on keyboards,
anyhow?). It's now over $3. That's more than 10X. Candy has gone up more
than 10X. On the other hand, a Mitchell 300 reel was about $20 in the
60's, and an equal value reel is about $40 today.

A very good burger with a half pound patty, a big slice of tomato, and a
big chunk of lettuce was $0.25 in the 60's, now it would be around $5.
The $0.25 shake would now cost around $3.

I don't know what to pick out to compare. And, of course, there's
lifestyle change. People are buying stupid stuff they would not have
touched, or was not available, years ago.

Well, that's what's wrong with just about every attempt to
measure price inflation. We buy different stuff. The
quality changes. What really matters is not price
inflation, it's monetary inflation -- how much is the money
supply increasing? The answer is -- a whole big stinking
bunch.

--
Robert Sturgeon
Alcohol, Tobacco & Firearms should be a convenience store, not a government agency.
http://www.vistech.net/users/rsturge/
.

Relevant Pages

  • Re: Now its $4 per gallon......of milk
    ... on for 30+ years now in America; in 1977 or 1978, Ford really did ... advertise full-size Fords with automatic transmission, power brakes, ... About that car... ... I'd say the true cost inflation figure for cars is about ...
    (misc.survivalism)
  • Re: Dealing with Microsoft Haters - a little humpday comedy
    ... The funny thing is that Ford actually won the Pinto case. ... merge lane, Sandra Gillespie's car stalled. ... The Pinto's gas tank ruptured. ...
    (comp.sys.mac.advocacy)
  • WSJ: How Detroit Drove Into a Ditch
    ... How Detroit Drove Into a Ditch ... a new car factory opened in America earlier this ... There are two American auto industries, ... Kerkorian started selling his stake in Ford last week after the value ...
    (misc.invest.stocks)
  • How Detroit Drove Into a Ditch
    ... How Detroit Drove Into a Ditch ... The financial crisis has brought the U.S. auto industry to a breaking point, but the trouble began long ago. ... The contrast couldn't be starker between Detroit's woes and the continuing U.S. expansion of Japanese, German and Korean car companies -- in both market share and manufacturing capacity. ... Billionaire investor Kirk Kerkorian started selling his stake in Ford last week after the value of his investment plunged by two-thirds since he bought the stock last spring. ...
    (soc.retirement)
  • Re: European v US automobile technology
    ... DAS: Of course. ... > being somewhat of a review of the new Ford Mustang. ... JC quite often criticises a car in specific areas but then says he likes it ... even if it means the engine will blow spark plugs out ...
    (rec.autos.makers.chrysler)