Re: Silver and Gold continue their assault on the "Dollar"
- From: "Bruce Remick" <remick@xxxxxxx>
- Date: Mon, 12 Dec 2005 20:24:53 -0500
"prgrmr" <prgrmr@xxxxxxx> wrote in message
news:1134435272.357147.212220@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> Rob Petrie wrote:
>
> > You would have only had to pay about $172!
>
> No. Like just about everything else in life, context matters. Price
> comparisions when adjusting for inflation have to take into account not
> just the suggested retail prices of the items in question, but the cost
> of the technology, manufacture, and distribution of the product. In
> otherwords, you have to compare like products.
>
> > http://www.westegg.com/inflation
> >
> > Amount: $999
> > Initial Year: 2004
> > Final Year: 1965
> >
> > "What cost $999 in 2004 would cost $172.20 in 1965."
>
> The technology for HDTV simply didn't exist in 1965. And if you try to
> hypothetically replicated the product using the technology of the time,
> the cost per unit clearly would have been in the thousands, if they
> could have done it with vacuum tubes at all.
>
> To illustrate how out-of-context your example is, say we take a
> high-end auto from 1929 and "let's see" what it would cost in 1800
> using the same website:
>
> Amount: 1,000
> Initial Year: 1929
> Final Year: 1800
>
> What cost $1000 in 1929 would cost $996.47 in 1800.
>
> Except not only were there no cars in 1929, the technology and economic
> infrastructure for cars didn't exist. Consequently such a comparision
> is virtually meaningless.
>
> >
> > How did that whopping $827 in purchasing power disappear, or more
> > accurately--TO WHOM did it disappear, and who now enjoys using it?
>
> It didn't go anywhere. The dollar is just a marker, a chit. In 1965
> salaries were lower. A newly college-graduated accountant could expect
> to start working making $1,500 - $3,000 depending on the market they
> got into. Today, the average starting salary is in the $40,000 range (
> see http://searchwarp.com/swa25634.htm) according to CNN Survey. Same
> work, different economic context.
>
> What are you going to do when the paper and the coins go away
> completely and we have a cashless society?
>
> ---
> mark
Maybe he'll stop these "Economics 101" posts, open the shades, and peek outside.
I doubt he'll find anyone concerned that their dollar is "worth" less than in
1965. I was making $5,500/year entry-level salary in 1965. Exactly as you
found, that same job starts at about $40,000 today. A new VW cost $1,900; a
new Impala about $3,500. My new 1966 Corvette cost me $4,600.
For many years, few of these purchases have been made with cash. As the years
go buy, the no-cash threshhold gets lower. In 20 years we'll still be sitting
admiring our gold and silver coins and bullion hoards just like we do today.
But most wallets will be reduced to credit card-size and any remaining paper
money will be left for some of us hardcore "boomers" and "pre-boomers" to spend.
Coins will be made only for collectors.
Bruce
'need I say, don't quote me on this'
.
- References:
- Silver and Gold continue their assault on the "Dollar"
- From: Rob Petrie
- Re: Silver and Gold continue their assault on the "Dollar"
- From: richard schumacher
- Re: Silver and Gold continue their assault on the "Dollar"
- From: prgrmr
- Silver and Gold continue their assault on the "Dollar"
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