2013
I was the recent recipient of one of those birthday yearbooks from the year I was born. In my case, I hesitate to admit, the year was 1943. I am the lost generation. Too young to be part of the greatest generation and too old to be a boomer, but back to my original point.
The government calculates the rate of inflation which I believe is intended to represent the growth in the price of goods and service over time. In fact, the US Inflation Calculator measures the buying power of the dollar over time. This Calculator uses the latest US government CPI data.
I was curious how the cost of things in my yearbook compare with prices today. In theory at least they should cost today near their actual cost in 2013. If not, it means they rose in price at a greater rate than inflation. We already know that health care has far outpaced the CPI, but what about everyday necessities, can we count on the CPI?
Let’s take a look🙈
According to my birthday yearbook in 1943 the following prices prevailed:
A new house was $3,600 and based on the inflation calculator should be $48,724.65 in 2013 👎👎
A new car was $900 and based on the inflation calculator should be $12,181.16 in 2013 👎
Tuition at Harvard University was $420 a year and based on the inflation calculator should be $5684.54 in 2013 👎👎👎 Isn’t that where all the brilliant economists live?
A movie theater ticket was $.35 and based on the inflation calculator should be $4.74 in 2013 👎
Gasoline was $.15 a gallon and based on the inflation calculator should be $2.03 in 2013 👎
A postage stamp was $.03 and based on the inflation calculator should be $0.41 in 2013 👌
Bread was $.10 a loaf and based on the inflation calculator should be $1.35 in 2013 👎
Hey, I’m getting depressed here, does the CPI actually apply to anything? Let me get this straight, the only item we buy that comes close to meeting the CPI growth is a postage stamp … brought to you by the same government that brings you the CPI. What a coincidence … and Teflon Obama wasn’t even born yet.
Oh one more I forgot, the average income was $2,041 and based on the inflation calculator should be $27,624.17 in 2013 👍👍👍
It would appears our windfall in income allows us to mail a letter, go to the movies, put gas in the car (but not buy a car), and buy a loaf of bread. The bad news is we have no house to live in, (maybe a cheap car?) and we definitely aren’t going to Harvard (where all the brilliant economists live).
So, can we count on the CPI? 🚫
QUINNSCOMMENTARY 
And unemployment in 1944 was 1.2%.
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Using the 3rd quarter for inflation for SS is a joke – The gas companies must be in on it with Government’s pockets overflowing!! The gas prices were high all year long until the 3rd quarter, now gas prices are going back up, groceries are going back up and it is now the 4th quarter. Do you think there isn’t any hanky panky going on in Washington? As for CPI and inflation, I totally agree with you. I was born in the early 40’s too and the salaries for Executives have soared, so much out of prospective than the Middle Class Worker – no wonder this Country is getting “class conscious” Middle class are paid in the area of what inflation should be, and Executives are so far above that the Middle class can hardly purchase a new house/car! Here in TX house prices are lower however car prices are more than I paid for my house in the 70’s. You are so right in your analysis!!
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