PRICES go up and up! Is that INFLATION, or is it Natural PROGRESSION? The definition of “inflation” is as follows: the sustained decline of purchasing power of a given currency over time, as opposed to “deflation,” which occurs when the sustained purchasing power of money increases. Moderate inflation typically accompanies economic growth. So, as long as “average wages” grow at the same rates as “average inflation,” not much changes!
When I began teaching in 1973-1974, the Texas state base beginning teacher’s yearly salary was $6,000. For 2019-2020, the base salary was about $34,000. That is close to six times as much. Is that inflation?
Average prices (U. S. not any specific region or state) in 1973:
1st class postage stamp--.08
Loaf of bread--.27
Gallon of milk--1.36
Gasoline per gallon--.65
Automobile--3,200.00
House—45,000.00
Average income—9,600.00
Average prices (U. S. not any specific region or state) in 1995:
1st class postage stamp--.30
Loaf of bread--1.62
Gallon of milk--2.41
Gasoline per gallon--1.11
Automobile--13,600.00
House--119,000.00
Average income--20,000.00
Average price (U. S. not any specific region or state) in 2020:
1st class postage stamp--.55
Loaf of bread--2.08
Gallon of milk--3.50
Gasoline per gallon--2.52
Automobile--28,000.00
House--284,000.00
Average income--48,000.00
The above prices, to mention again, were averages and not guaranteed to be true for where you live or lived last year!
All I know is that in the early 1970s I could buy a 12 oz. soft drink out of a machine for a dime, and now it is from $1.00 to $2.00. A candy bar back then was a dime for what is called a “regular” size today and costs usually a dollar or so now. A gallon of gasoline was from .26 to .33 per gallon and now is usually any where from $2.00 to $3.00 lately. I could buy a fast food combo meal (burger, fries, drink) for well under $2.00, and 4 tacos at the Taco Inn were 4/$1.00 after 8:00 p. m. The list sticker price for my Ford Fairlane or Torino was about $3,500.00, and I think my auto full-coverage insurance ($100.00 deductible) for one year for an “under 25-years-old, un-married, male, with no previous tickets” was a little under $400.00.
And as we were complaining about “inflation” in the 1970s, it did not prepare us for the “downturn” of the ‘80s when housing (and commercial construction) just about stopped in Forney!
So, just wait, and things will change and then change again! You’re welcome for the good news of this article.
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