This blog is devoted to articles related to finance, borrowing, real estate, economics and the credit union/banking industry.

Tuesday, July 12, 2005

INFLATION - WHO SAYS IT'S DEAD?

- a dollar in 1950 will buy only 13 cents worth of goods today, 87% less than before -
example 1: a postage stamp in the 1950s cost 3 cents; today's cost is 37 cents - 1,233% inflation;
example 2: a gallon of full-service gasoline cost 18 cents before; today it is $2.28 for self-service - 1,267 % inflation;
example 3: a new house in 1959 averaged $14,900; today it's $282,300 - 1,795% inflation (+1,510% if quality-adjusted);
example 4: a dental crown used to cost $40; today it's $740 - 1,750% inflation;
example 5: an ice cream cone used to cost 5 cents; today its $2.50 - 4,900% inflation;
example 6: monthly Medicare insurance premiums paid by seniors was $5.30 in 1970; its now $78.20 - 1,475% inflation;
example: several generations ago a person worked 1.4 months per year to pay for government; he now works 5 months.And in the past, one wage-earner families lived well and built savings with minimal debt, many paying off their home and college-educating children without loans. How about today?