10X inflation in the last 40 years.

[The Big Squeegee]

I don't know if any of you have noticed. Here are some indicators that some of us have lost track of the value of a $.

Sign says "No bills over $20". That is like saying 40 years ago "No bills over $2".

Gas station attendant "I can't make Change for $100 bill". 40 Yrs ago "I can't make change for a $10 bill"

ATM has a $400/day withdrawl limit. 40 yrs ago it was $300 but the $400 limit today would be like a $40 limit 40 yrs ago.

It just does not make sense to me. I think we should do away with the penny and the nickle and introduce the $500 & $1000 bills. That way we could update the curency to be as available as it was 40 years ago.

Are you keeping up?

 

[petesign]

I agree, but the feds dont want people to be able to carry large amounts of it around, it's easier to smuggle that way, and harder to track your spending.

 

[randya]

So if the Stock Market is at 12,000......

 

[TheSnowman]

That puts it in perspective Dale! I was just thinking about this the other day...I've been in business for 6 years now, and really haven't raised any prices for my regular customers that I do work for week in and week out. To adjust even for a $50 item, it's been inflated $5 more since then. If you figure that times four projects a week, and 52 weeks a year, that's another $1000 or so that I'm missing out on in a year. Do I raise the price and risk losing a very loyal customer, that may not mind because of the service we give them, or do I just wait a few more years, and increase it all then?

 

[WildWestDesigns]

That puts it in perspective Dale! I was just thinking about this the other day...I've been in business for 6 years now, and really haven't raised any prices for my regular customers that I do work for week in and week out. To adjust even for a $50 item, it's been inflated $5 more since then. If you figure that times four projects a week, and 52 weeks a year, that's another $1000 or so that I'm missing out on in a year. Do I raise the price and risk losing a very loyal customer, that may not mind because of the service we give them, or do I just wait a few more years, and increase it all then?

A loyal customer should be there regardless if you raise your rates to keep up with the times. My farrier went through this as well. Keept the same prices that he has had for about the same time period (6 or 7 yrs) and hasn't raised them. Now farriers are almost a dime a dozen here and I know enough and have enough experience that I could do it myself if I had the time. However, what sets this guy a part is his service. So even if he hiked it to keep up with the times I would still have him come out, but if I thought I was getting exploited I would drop him.

It's a fine line for sure. He said that whenever he did raise rates he would give a few months notice and let everyone know.

 

[The Big Squeegee]

I like to think that price adjustments should be regular enough that no one really notices it. It is the large increases that will have the customer looking around for a better deal.

The biggest problem is that wages have not kept up with inflation. 40 years ago the minimum wage was about $1.45/hr. To keep up it should be $14.50/hr. I think it is $5.75 now. Less than half what it should be.

 

[WildWestDesigns]

I like to think that price adjustments should be regular enough that no one really notices it. It is the large increases that will have the customer looking around for a better deal.

The biggest problem is that wages have not kept up with inflation. 40 years ago the minimum wage was about $1.45/hr. To keep up it should be $14.50/hr. I think it is $5.75 now. Less than half what it should be.

Here it's around 8 I believe. Thankfully I haven't had to work for min. wage in a very loooooonnnnnggggg time (not since high school), so I'm just guessing, but I'm pretty sure it's not 5.75 here. Alicia(ball and chain) was getting paid more then that while she was working at kroger getting her cpa and they only paid .15 over min. wage here. I just can't for the life of me remember what that was.

 

[SignStudent]

I'm curious what source you're getting this statistic from. I just checked a couple websites and they're showing roughly 5.5X inflation in the last 40 years. Still not good, but definitely better than 10X.

 

[The Big Squeegee]

Ok so I'm a little behind. I just checked. The minimum wage for our state is $7.25. Still in the 50% range of inflation in the past 40 years.

 

[Jim Doggett]

I don't know if any of you have noticed. Here are some indicators that some of us have lost track of the value of a $.

Sign says "No bills over $20". That is like saying 40 years ago "No bills over $2".

Gas station attendant "I can't make Change for $100 bill". 40 Yrs ago "I can't make change for a $10 bill"

ATM has a $400/day withdrawl limit. 40 yrs ago it was $300 but the $400 limit today would be like a $40 limit 40 yrs ago.

It just does not make sense to me. I think we should do away with the penny and the nickle and introduce the $500 & $1000 bills. That way we could update the curency to be as available as it was 40 years ago.

Are you keeping up?

+1, I hate change, and change :^)

The penny, especially, is ridiculous. When we first needed a monetary unit that "small" what was it worth, in today's Dollars? A buck? More?

Heck; I think we could whack everything south of a quarter, and not even miss the "nickles and dimes" (a metaphor for "petty!")

OK; off soap box. Great chit-chat, Dale.

 

[WrapperX]

The problem is that we have markets that are unchecked by authority - So they - companies/corporations - can raise and technically lower prices when they want. Just look at the spike in "minimum wage". It's damn near close to $9 in some places!!! WTF is that all about - Minimum wage is supposed to be - exactly that - the MINIMUM amount a person should make for a typical job - there are kids out there getting paid $9/hr to do monkey jobs - And the argument from people - mostly people who are either uneducated or recently layed off and forced to get any job - is that "I can't live off of $8.50/hr" Which is obviously true - to me, in my mind - it wasn't meant to be a living wage, it was meant to be a starting point for our young working force to get paid to do basic work - BUT instead of fixing the problem they just raise the minimum that people get paid - so companies raise prices because now everyone is getting paid more.

The thing that IRKS me is that those who have been constantly working - like myself - haven't had their pay adjusted in accordance with the base pay going up. Meaning - that I've been working for 8 years doing what I do - Starting at the minimum wage of 8 years ago and getting raises over the course of those 8 years. NOW a schmuck starts my same job today and is starting that job at a pay rate that is only a few $$ less then what I'm making NOW and have "earned" over the course of those 8 years!!

 

[Fred Weiss]

I'm curious what source you're getting this statistic from. I just checked a couple websites and they're showing roughly 5.5X inflation in the last 40 years. Still not good, but definitely better than 10X.

Depends on what you check.

40 years ago (1971), I bought my first home. It was a 3/1 in Silver Spring, MD. We paid $21K for it and has a monthly PITI payment of $110.00. Today that house sells for more than 10X the price then. A pound of ground beef was around 59¢ ... 7X to 8X today. A gallon of gas was around 39¢ to 49¢ so 9X to 10X there. A pair of 12 x 24 magnetic signs was $29.95 and up ... today $29.95 and up. A middle class wage was $3 to $4 and hour ... today 6X to 7X higher.

 

[signswi]

The problem is that we have markets that are unchecked by authority - So they - companies/corporations - can raise and technically lower prices when they want. Just look at the spike in "minimum wage". It's damn near close to $9 in some places!!! WTF is that all about - Minimum wage is supposed to be - exactly that - the MINIMUM amount a person should make for a typical job - there are kids out there getting paid $9/hr to do monkey jobs - And the argument from people - mostly people who are either uneducated or recently layed off and forced to get any job - is that "I can't live off of $8.50/hr" Which is obviously true - to me, in my mind - it wasn't meant to be a living wage, it was meant to be a starting point for our young working force to get paid to do basic work - BUT instead of fixing the problem they just raise the minimum that people get paid - so companies raise prices because now everyone is getting paid more.

The thing that IRKS me is that those who have been constantly working - like myself - haven't had their pay adjusted in accordance with the base pay going up. Meaning - that I've been working for 8 years doing what I do - Starting at the minimum wage of 8 years ago and getting raises over the course of those 8 years. NOW a schmuck starts my same job today and is starting that job at a pay rate that is only a few $$ less then what I'm making NOW and have "earned" over the course of those 8 years!!

Actually minimum wage was originally designed as the minimum hourly a man could make to support his wife and two kids. Ponder that.
Perhaps you should job jump more and put yourself in position for merit raises instead of just inflation raises if you're so concerned about young blood making what you make.

Average inflation has actually been controlled rather well, the important thing is as Fred points out, specific sector inflation. For example the inflation of an undergraduate degree now vs. in 1970 is astronomical.

However, many of the OP examples have nothing to do with inflation. Places that don't have much cash on hand is either a) high theft risk area or b) mostly a credit card business (see: almost all businesses). Also what the hell is a gas station attendant those only exist in like 5 states anymore ;P.

 

[WrapperX]

Actually minimum wage was originally designed as the minimum hourly a man could make to support his wife and two kids. Ponder that.

If that truely was the case then it really is in need of an over haul! I can barely support my wife and kid with our joint income and we make WELL over the minimum wage together.

The state of our society is a grim situation...between uncontrolled inflation, greed and self indulgance it might not be a bad thing if the world ends in 2012...

 

[Fanaticus]

Notice the grocery stores raising their prices? 2 weeks ago I bought a 2 liter of 7-up for $1.19. The other day I go to get another one and it's original price was marked to $1.89, but it was on sale for $1.49.

 

[Pat Whatley]

Gas station attendant "I can't make Change for $100 bill".

Don't know about you but when I get gas there's not a whole lot of change left to get from a $100 bill. :ROFLMAO:

 

[WildWestDesigns]

Don't know about you but when I get gas there's not a whole lot of change left to get from a $100 bill. :ROFLMAO:

Ain't that the truth. Diesel where it's at, I can't even full up my truck before the 75.00 limit kicks in and I just hate the idea of having to swipe that card another time to get 1 tank of diesel with a limit at 75.00.

 

[cajun312]

My dad was a farmer, I worked for him while in high school, I remember being really excited when my pay went up from $8 to $10......a day

 

[Pat Whatley]

My dad was a farmer, I worked for him while in high school, I remember being really excited when my pay went up from $8 to $10......a day

I own a sign company....there are days when $10 a day would excite me too.

 

[The Big Squeegee]

Utility money(for the day)

I own a sign company....there are days when $10 a day would excite me too.

I know the feeling.