In 1962 [Pic]

Submitted by: SweepOfDeath 4 years ago in Misc

Mmmmm inflation.
There are 27 comments:
Male 213
Interesting.Here`s an English perspective from the next year. In 1963, my father bought a new Rover 3-litre car for £2,999, and he and my mother took out a mortgage to buy a three-bed pre-war semi in suburban London for £2,850.
50 years on, the house would be worth £ 300,000 - the equivalent car maybe £35-40,000.
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Male 17,511
dirtysteve: I didn`t take it into political "talking points", tedgp did and then I corrected him.
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Female 6,381
I was around then, but didn`t go shopping. I *am* old enough to remember 5- and 10-cent candy bars and filling my first car from empty for $5.
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Male 373
Crakr

Inflation is one of the most complicated discussions, and not something you can boil down into your favourite talking points.
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Male 17,511
tedgp: Inflation has more to do with over taxation and increasing money supply than anything corporations do.

"Creating food, everyday items hasnt changed much at all. It still takes the same materials and skill."

Oh how wrong you are there. We create much more food on less acreage than we did then, we have better materials, computers, robots and completely different job skills, requiring college education.
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Male 41,079
[quote]...Inflation isn`t the devil...[/quote]

@xavroche: LOLZ! Says someone who wasn`t even BORN in the 70`s!

You`ve never paid 13% + on your mortgage or loans! Trust me? It`s no fun. Go look up the payment differences between current rates (say, 5%) and hyper-inflation rates (say, 15%) and you`ll see the Devil.
Also the difference between a 20K mortgage and a 200K typical house mortgage...

[quote]...why do we feel poorer today?[/quote]

Because a LOT more of our income is chewed up by taxes! That`s why! The hidden taxes that drive up gas & heating prices? They inflate ALL other prices too.

@tedgp: Then WHY do the left-libs claim the "rich are getting richer" in these days of SUPER-LOW inflation??? OWS?
Your bucket carries no water, pal.
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Male 3,285
@5cats. Nothing changes in the world. Again, the only greed causes inflation. Look over the history of mankind. The biggest inflation period in human history is from the 50`s to now. Creating food, everyday items hasnt changed much at all. It still takes the same materials and skill.

The only people who say inflation isnt caused by greed/profiteering etc are those who are causing it.
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Male 2,578
puppies, this doesn`t say that. Look at it again.
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Male 2,578
Inflation is the boogeyman it`s made out to be, and many economists do embrace it. They want annual inflation, annual devaluation of the currency, forever. Interestingly enough, ever since the modern era of US inflation began in the late 60`s, US middle and lower incomes have ceased to grow.

The worst part about it is that it completely discourages savings. Fewer will save money if 1, 2, 3 or more percent put their money gets wiped out every year. Without any savings, economic disasters become difficult. All true recoveries are not built on debt (like today), but rather savings. Inflationary policies destroy savings.

It`s also another piece of the pie to the great modern era of Bubble Economics. Inflation, Monetary Easing, Zero Interest Rate Policy. Great stuff. And then you wonder why things get valued wrongly and crash!
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Male 683
So in 1962 the "average" American could afford to buy a new house, new car and send a kid to university every single year..... yeah ok.
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Male 819
Also wanted to add, but ran out of chars:
Given that if these figures are accurate our purchasing power hasn`t really decreased, why do we feel poorer today?
I mentioned wealth distribution, and someone mentioned costs associated with new technologies (internet cell phone etc). These are factors, but I would argue that another important factor is that we have gotten into the bad habit of buying everything on credit and wasting huge amounts of money on interest payments. I`d be curious to see how much the average american spends on interest on car payments, mortgages, school loans etc as opposed to what we spent in 1962....
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Male 819
@AntEconomist:Thanks Milton Friedman... even though this simplistic view has been shown to be inaccurate over the last 2Oish years.

I don`t know why everyone is getting so caught up on inflation. Inflation isn`t the devil and you`d be hard pressed to find a credible economist who doesn`t favor limited inflation.
The only thing that really matters her is the evolution in purchasing power. And to be honest based on these numbers it hasn`t really evolved all that much. The median salary is currently around 51k. Yes that means that the relative price of gas has gone up by around 30%, and that Harvard has tripled or quadrupled (that`s the most shocking imho), but other than that the price of most of the items listed doesn`t really seem to have gone up in relative terms.
Of course, that doesn`t take into account wealth distribution, which I suspect has gone downhill since 1962, but given these figures alone, there isn`t anything very shocking...
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Male 41,079
@tedgp: GREED??? LMAO! ZOMG! Oh boy oh boy! Oh wait... you`re serious? :-/

@AntEconomist: YOU are correct! :-)
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Male 374
tedgp: Inflation is caused by one thing and one thing alone: an increase in the ratio of the money supply to the quantity of goods and services produced.
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Male 3,285
Inflation is caused by one thing and one thing alone. Greed. NOTHING ever costs more. It always remains the same. The problem is greedy people charge more for it and then try and bluff their way to an excuse for doing so.
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Male 892
Tuition and incidental fees for international students at Canada`s top universities is around $15,000 a year. Come on up -- we would love to have you.
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Male 2,436
No wireless phone bill
No cable/satellite bill
No internet bill
No Netflix bill
No Xbox live/Playstation network bill
Ground coffee? What the hell is that? I`mma go to Starbucks...
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Male 363
Ultimated, nice call, someone gets math...
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Male 17,511
Ollie: "Just multiply times 10."

Not for everything. Food prices haven`t inflated as much as everything else.

Milk is $3.50 a gal, Bread $1.60 a loaf, Ground Beef $3.50 a lb. Inflation has been even across the board.

Another example, You couldn`t get into Harvard with only $15,200 a year, it`s closer to $50,000 a year now. And good luck trying to find gasoline at $2.70 a gallon.
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Male 767
looks like i need to quit bitching about milk prices
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Male 147
40 cents for a post stamp must`ve been expensive back then.
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Male 15,832
[quote]What am I looking at here?[/quote]
Just multiply times 10.
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Male 1,104
just to provide some context, the world in 1962

(no. 9 dazzles me ... i need to get a chandelier for my home i think)
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Male 312
I`m not sure H2oxy, but I think its the 1962 cost of living.
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Male 2,578
Ah yes, Keynesian Economics. Supposedly, devaluing the currency every single year is supposed to be necessary for prosperity. LOL.
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Male 309
What am I looking at here?
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Male 938
Link: In 1962 [Pic] [Rate Link] - Mmmmm inflation.
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