http://www.mybudget360.com/cost-of-living-1938-to-2015-inflation-history-cost-of-goods-inflation/
People have a hard time understanding how inflation erodes their
purchasing power. Little by little the cost of everything goes up and
people simply assume this is normal in an economy. The $2 movie ticket
becomes a $8 movie ticket. That can of tuna just got smaller but the
price remains the same. The cost of going to college
went from manageable to needing large student debt merely to complete a
four year degree. Inflation is argued to be a purely monetary
outcome. You have too much money, in the form of cash or credit in
today’s case, chasing fewer goods. In our current economy, debt is the
fuel accelerating inflation. You can see this in items like housing,
cars, and college where debt is the primary fuel driving prices higher.
The big problem today is that incomes are simply not rising fast enough
to keep up with the rise in other expenses. Over time, inflation has a
big destructive power. I thought it would be useful to look at the
cost of typical items in 1938 and compare them to where things stand in
2015.
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