posted on Aug, 31 2009 @ 12:59 AM
Wife and I were talking about this graph the other day... Most notably the final comment in his final bubble...
Now try to imagine what your life might be like if every dollar that you had bought you 20 times as much stuff... This is the cost of inflation.
EXACTLY! When I was much younger, interest rates were very high. It discouraged people from buying big ticket items and encouraged saving. So, I saved
as a teenager and put my savings as a big down payment on a new car back in the early 80's (under pres Carter.)
Interest rates when I was a teenager buying a new car were 21%-23%. New off the lot, the car was about $8,500. Payments were something like $150+ a
month. No problem.
Now, the thing is that wages for a teenager (or anyone) haven't really changed, yet the cost of a new car has skyrocketed because of inflation.
Yeah, you might get 0% financing these days but looking at a comparable vehicle (from 1985) is priced close to $18,000 these days. Putting $2,000
cash, as I did, for a down payment won't get you far either.
Financing $16,000 for even as much as 7 years at 0% is completely out of touch with what money USED to be able to buy.
It's infuriating to see the value of dollar depreciated to such lows in EVERY daily transaction.
... the numbers maybe off a bit, but I can attest that they are close and reasonable...
Thanks for posting the graph! The OP gives me yet another reason to vent!
This economy needs to be righted and the manipulative banksters need to go... very soon.
[edit on 8·31·09 by DrMattMaddix]