MONEY: The tomato soup standard of value

http://keywestlou.com/a-good-time-last-night

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Then to Publix. I bought nothing. Cost $51. How do families do it?

When I was in high school, I worked in what was then called a supermarket. The time 1949. Supermarkets then were not the huge stores of today. Not even close. One of my jobs was to stock the shelves. One of the items was Campbell Tomato Soup. Five cents a can. I noticed Publix was having a Campbell Tomato Soup sale. Four cans for $4.95. $1.24 a can.  Although more than 60 years later, still a major increase!

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I would suggest to you that the difference is not “a major increase”, but a way to recognize that the value of “a dollar” — whatever that is — has dropped from 0.05 to 1.24.

Some economists — mostly from the Von Mise’s “Austrian School” — have asserted — I believe correctly — that the dollar has lost anywhere from 99.9% to 90% of its value depending on the interval you choose to measure.

In your specific example, it’s 95%!

Argh!

It’s about the Federal Reserve System, that is the OPEC of American Banks, Gooferment debt, Gooferment spending, cowardly politicians, and spendthrift bureaucrats.

The dollar, like the history of the French Franc, has been “devalued” day by day. Today the dollar is a shadow of its former self.

That’s the problem. 

Tomato soup hasn’t become more expensive; the dollars used to buy it are worth so much less. Ditto gas. Ditto every other product or service.

Argh!

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One Response to MONEY: The tomato soup standard of value

  1. According to the handy-dandy inflation calculator at http://www.westegg.com/inflation/infl.cgi the same soup should only be about 50 cents today, but I’m guessing that in 1949 maybe Campbell’s didn’t have quite the same “brand-name punch” it does nowadays. If you look at the prices of the cheap store brands today they might actually be closer to that 50 cent range.

    – MJM

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