Friday, November 16, 2007

Grandfather Inflation Report

How much inflation have we seen since the 50's?:

Inflation in my adult years increased average prices 1,000% or more:

example 1: a postage stamp in the 1950s cost 3 cents; today's cost is 41 cents - 1,266% inflation;

example 2: a gallon of 90 Octane full-service gasoline cost 18 cents
before; today it is $3.05 for self-service - 1,870 % inflation;

example 3: a house in 1959 cost $14,100; today's median price is $213,000 - 1,400% inflation;

example 4: a dental crown used to cost $40; today it's $1,100 - 2,750% inflation;

example 5: an ice cream cone in 1950 cost 5 cents; today its $2.50 - 4,900% inflation;
The chart below shows CPI since 1800:

It is only since we moved completely off of the gold standard in 1971 that the CPI rocketed upward. The curve is probably steeper since the methodologies in computing CPI have changed in recent times.

The day is fast approaching when people are going to be buying loaves of bread with wheelbarrows of cash.

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