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Thread: Currency concerns

  1. #26
    Cyburbian mgk920's avatar
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    Quote Originally posted by Tide View post
    Where did you get this stat? The best I can find is that .01 in 1933 adjusted for inflation is about .25 today. 2500% inflation not 10000%?
    Quote Originally posted by Random Traffic Guy View post
    It may be taken from how each US Dollar was worth 1/16 of an ounce of gold until 1933, and now is worth about 1/1600 of an ounce of gold. Since most official inflation numbers are full of shenanigans (as we discussed a while back in some of the cost of living threads) or not published at all (M3), it is hard to pin anything down. Gold in hand is usually not a good investment in a growth sense but it does offer a way to keep your wealth intact and mobile when currencies go through crises or conversions.
    Yes, in part I got it comparing the price of gold (One Dollar was indeed legally defined as about 1.5 grams of gold metal - $79.14 as of this typing - until early 1933) but also by comparing prices of comparable goods and commodities between then and now.

    Examples:

    Room in a downtown hotel for one night:
    1912 - $1
    2012 - $75-100

    A decent room:
    1912 - $2
    2012 - $150-200

    A really nice room:
    1912 - $3
    2012 - $250 and up.

    A good beer in a bar/beer hall:
    1912 - 5¢
    2012 - $4-6 and up

    Decent restaurant meal for a family of four:
    1912 - 30-40¢
    2102 - $40-50

    Daily newspaper:
    1912 - 2-3¢
    2012 - 75¢-$2

    First Class™ letter stamp:
    1912 - 3¢
    2012 - 45¢ (snailmail is a BARGAIN today - on the true inflation scale, a stamp should now be about $2.50!)

    New car:
    1912 - $500-750
    2012 - $25-50K and up

    And so on.



    Remember, too, that the USA used essentially the same slate of coins v. banknotes then as it does now. A century ago, to even have ONE $1 banknote in the wallet was to be carrying 'real' money around and nearly all everyday small-time commerce was done using coins *ONLY*.

    Mike

  2. #27
    Cyburbia Administrator Dan's avatar
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    One peeve of mine in discussion about inflation through the years; both old and young people seem to think about old prices as being cheaper, instead of the underlying dollar being worth more. I hear this a lot with old car prices - "Cars used to be so much cheaper then! I bought a new 1965 Ford Galaxie for $4,000!" Uhhh ... no. You paid today's equivalent of $27,000 for it. From a 1965 perspective, $4,000 was a LOT of money, but the old-timers seem to look back and remember it as if such major purchases were made from pocket change, like my Dad recalling the used Oldsmobile he bought for $500 ($4,000) in 1955.
    Growth for growth's sake is the ideology of the cancer cell. -- Edward Abbey

  3. #28
    Chairman of the bored Maister's avatar
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    Quote Originally posted by Dan View post
    One peeve of mine in discussion about inflation through the years; both old and young people seem to think about old prices as being cheaper, instead of the underlying dollar being worth more. I hear this a lot with old car prices - "Cars used to be so much cheaper then! I bought a new 1965 Ford Galaxie for $4,000!" Uhhh ... no. You paid today's equivalent of $27,000 for it. From a 1965 perspective, $4,000 was a LOT of money, but the old-timers seem to look back and remember it as if such major purchases were made from pocket change, like my Dad recalling the used Oldsmobile he bought for $500 ($4,000) in 1955.
    Off-topic:
    Not to mention that comparing a car built 50 years ago to a current car is in many ways comparing apples to oranges. Cars nowadays are a whole lot more dependable and last on average much longer, require less maintenance, are safer, have features not even dreamed of, etc
    Last edited by Maister; 19 Apr 2012 at 2:16 PM. Reason: added OT tags to protect ofos' delicate sensibilities
    People will miss that it once meant something to be Southern or Midwestern. It doesn't mean much now, except for the climate. The question, “Where are you from?” doesn't lead to anything odd or interesting. They live somewhere near a Gap store, and what else do you need to know? - Garrison Keillor

  4. #29
    Cyburbian ofos's avatar
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    Quote Originally posted by Maister View post
    Not to mention that comparing a car built 50 years ago to a current car is in many ways comparing apples to oranges. Cars nowadays are a whole lot more dependable and last on average much longer, require less maintenance, are safer, have features not even dreamed of, etc
    Not to mention that every attempt at discussion defaults to reasons why you can't have the discussion. Stay on task folks!
    “Death comes when memories of the past exceed the vision for the future.”

  5. #30
    Cyburbian imaplanner's avatar
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    I wonder if we will ever see a cashless society. I know there has been some movement to ban cash in certain areas and for certain types of transactions- the reasoning being that the primary users of cash only nowadays are drug dealers and prostitutes. I rarely ever use cash, except when I visit ... ummmm. never mind.
    Children in the back seat can cause accidents - and vice versa.

  6. #31
    Cyburbian
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    I don't think the US will get there anytime soon since too many want their transactions off the government radar or they simply don't trust the technology.

    I personally would like a cashless society. The only time I use cash is for parking meters and toll roads... Remember driving through Chicago for the first time a few months back and freaking about my lack of cash on all those tolls roads. Wasn't sure I had enough to cash or coins to pay all those tolls.

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