37 votes

1934-2013 / Insane Price Inflation Comparison of Food & Silver

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Interesting. Thanks for taking the time to post.

It helps to understand the "real" numbers if you compare to the price inflation of incomes. A quick Internet search found 1934 average income information. Please see this link, PAGE 5: http://www.irs.gov/pub/irs-soi/34soireppt1ar.pdf

It mentions avg annual income was $3,125 for all returns and $4,645 for taxable returns. Let's pick a number in between those, and say a middle class income back then was $3,700 a year.

25x $3,700 is $92,500 or a 2,500% increase. It seems like salaries have increased MORE THAN commodities, doesn't it?

What is not taken into consideration is two things: 1) the MASSIVE amount of price deflation that SHOULD HAVE occurred through better technology and better productivity because of better innovative technology; 2) The massive INCREASE in salaries.

In other words, commodities should, generally speaking, always get cheaper. So IF we had good money (gold / silver), then we should expect the prices of the sugar, steak, onion, and coffee to be LESS than what is listed there. But instead we saw a 2,000 - 3,000% increase.

With sound money, the prices should have gone down, like steak might now cost $0.07/lb, but salaries may be well have gone up 5x to $18,500. That's what SHOULD happen in a free society with sound money, something like that. Because freedom (minimal gov't) and sound money create conditions where prices will generally fall and salaries generally rise over time. In truth, we all should be able to enjoy a greater standard of living, while working 3-4 days a week.

But The Federal Reserve and our corrupt gov't ensures that just the opposite is occurring.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a rEVOLution before tomorrow morning." - Henry Ford

We have some examples. From

We have some examples. From 1800 to 1907, wages rose about 10% (within the range of error of the study), while prices fell by about 50%. Basically, wages/price increased 100%. In comparison, from 1913 to 2007, wages/prices rose about 300%.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

*3000%

But salaries did not increase that much

The median household income for 2012 is $51,000.

Thanks for posting this video on inflation

.

But how does that compare to income?

In 1934 the hourly wage rate for someone in manufacturing was $.58, or around $1,200/year.

Now, if you could get a job in manufacturing, the hourly rate is $34.74, or around $70,000. That is a 5900% increase. As a percentage of income, the food and clothing people buy are much cheaper.
Unemployment, then, like now, was high, but taxes are higher now.

Congress and FDR really started monkeying with the economy trying to get things going at that time. They self-servingly believed the free market failed when it was the central planning of the FRS that failed. The National Recovery Act, passed in 1933, really intervened in private economy and helped extend the Depression until FDR died and WWII ended. Some of the prices in the 1934 newspapers reflect that.

[F]orce can only settle questions of power, not of right. - Clyde N. Wilson

scawarren's picture

Where did you get "Now, if

Where did you get "Now, if you get a job in manufacturing, the hourly rate is $34.74" ?
Manufacturing jobs in my area, NW Arkansas, are less than half of that number.

It is easier to fool people than to convince them that they have been fooled. – Mark Twain

The figure is an hourly compensation cost figure

from the U.S. bureau of labor statistics. It probably includes non-salary compensation & benefits. Most of those costs did not exist in 1934.
I cannot find the original source I used, but it was also a BLS figure. Here is a press release from the end of last year. The 2011 figure it uses is $35.53
SOURCE

[F]orce can only settle questions of power, not of right. - Clyde N. Wilson

as someone posted the other

as someone posted the other day, minimum wage in the early 40's (I believe that was the year) was 5 silver quarters. $1.25 per hour. The melt value of these silver quarters totals over $27. That means at that time, minimum wage was over $27 per hour.

The early '40's is not 1934 when there was no minimum wage

The first minimum wage law in the U.S. was passed in October 1938. At that time the non-farm minimum wage was set at $.25 per hour. In the early 1940's it was $.30 per hour.
It reached $1.25 in 1963.
SOURCE

[F]orce can only settle questions of power, not of right. - Clyde N. Wilson

Thanks for the clarification.

Thanks for the clarification. I just saw the thread yesterday, but couldn't remember the exact dates. Pretty stunning though how much inflation we've had since then.

Don't forget quality

Those food items in 1934 would be considered today, "Organic", "No Hormones", "No Antibiotics", "GMO-Free". Should probably look up the cost of those items today instead.

Buy a shirt!

Outstanding Educational Video!

This video makes the case for sound money in simple, straight forward and common sense terms.

Ed Rombach

Good job on that video.

Good job on that video.

Would anyone be complaining if we had 1964 stable prices? A 25 cent silver quarter would still buy you a gallon of gas.

That's a 3000% increase on

That's a 3000% increase on average for any good back then compared to today's prices. That means 0.033 cents in 1934 is worth 1 dollar today. But not according to the government. Dont' believe me?

http://www.bls.gov/data/inflation_calculator.htm

Type in 0.033 in 1934 dollars averaged to 2013 dollars, and it will get $0.58. That means they are WAY understating inflation.

Cyril's picture

Shared on Twitter.

Shared on Twitter.

The American people is in DIRE NEED to wake up to these things.

Darn it.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

So if his numbers are right,

So if his numbers are right, if we kept our currency in silver and gold, except for the price of steak, the cost for sugar and onion would be a lot lower, and less so, the cost coffee would be lower as well.

It is better to look dumb and not be, than to look smart and not be.

The thing is, your salaries

The thing is, your salaries would also be a lot lower.

Also, the price of gold and silver have fluctuated tremendously over the past 100 years. That really isn't good. Had they been used as currency, there would have been a lot of economic uncertainty. In contrast, the fiat dollar has generally had slow, modest inflation year-to-year.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

Cyril's picture

Excellent.

Excellent.

Thank You for sharing this.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Interesting Numbers

We all know that inflation in the things we need continues to sky rocket. But sometimes seeing it compared with everyday items from not 'to' long ago makes it all the more real and shocking.

Also noteworthy is that when Silver was in the mid $40's per oz a year or so ago, according to your numbers that translates into 8-9000% increase in price from the mid 30's. No wonder they manipulate the price down constantly. Nothing exposes the fraud of paper money more than honest money does.

Great job.

I found papers under linoleum also from 1930's.

Some int the walls from 1860.

Lots of interesting things, for sure.

Thanks ctkelly!

Free includes debt-free!