What Do You Think? It isn't inflation that is the problem?
@buttheadface932 (708)
United States
January 8, 2016 1:34am CST
Here is a diagram relating the average costs of living in 1938.
Do the math- compare the prices of the olden days to those of today.
For example, a postage stamp at 3c is now 49c I think. That is an increase of ~1600%.
Now (if this is accurate, of course), an equivalent rate of increase in college tuition- at Harvard U no less- would be now only ~$7K. Some things have went up more than others, as you can see.
Of course, other factors are to be taken into account here. But certainly, prices have increased by the hundreds of percent..more than ever before in history.
Do you think that inflation is the problem, or is it something else?
3 people like this
2 responses
@WorDazza (15826)
• Manchester, England
8 Jan 16
It's a combination of things, inflation being one of them.
One of the major factors in prices is supply and demand. The more demand there is for something the higher the price will go if the supply can't be increased to meet that demand. The Harvard tuition fees are a good example of this. You can't easily increase the number of places available at Harvard and demand for a good education generally increases year on year.
2 people like this
@buttheadface932 (708)
• United States
8 Jan 16
Yes...too bad it's out of control!!! The "pure" economy is a nightmare for the common person.
2 people like this
@WorDazza (15826)
• Manchester, England
8 Jan 16
@buttheadface932 I've given up trying to understand the 'logic' behind much of the stuff that goes on in the economy. I always find it strange when a company announces lay offs and the share price goes up. A sure sign that the interests of the shareholder are not necessarily aligned with the interests of the company employees!!!
2 people like this
@RasmaSandra (98127)
• Daytona Beach, Florida
8 Jan 16
@buttheadface932 not being in the states anymore I haven no idea however I now that once here in Latvia they switched to the Euro prices jumped so much higher. I just watched a video that I took from my TV back in NYC. It includes commercials and was taken in the 1990s and there is a commercial about whole chickens at ShopRight for 69 cents a pound. I am sure they cost a lot more today.
2 people like this
@buttheadface932 (708)
• United States
9 Jan 16
Yes I agree, exactly! If the definitions are equivalent, then a "new house" today in a decent area would start at like $100K
1 person likes this
