When dealing with monetary figures from the past, you must be careful to distinguish nominal dollar amounts (the actual dollar amounts of the time) with inflation adjusted dollar amounts. Obviously a dollar was worth more in, say, 1950, than it is today, so comparisons of nominal dollar amounts are pretty meaningless. In fact, the prices of many (but not all) consumer goods are cheaper in inflation adjusted dollars today than they were in the past. And even things that are generally more expensive (like automobiles) are of much better quality than they were in the past, so comparisons need to be adjusted for that as well. Nobody would really want a Model T Ford today, except as a collectors item.
Posted on: Sun, 16 Mar 2014 08:09:27 +0000
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