Author Topic: Here's why gas is $3 a gallon (Read 2988 times)

Matthew · « **on:** January 07, 2008, 03:03:03 PM »

It used to be, say, 30 cents a gallon.

But 3 dimes were made of what -- oh yes, silver!

3 silver dimes today would cost you -- $3.00.

So the price of gas actually makes sense!

Vandaler · « **Reply #1 on:** January 07, 2008, 03:21:00 PM »

Here's why ground beef is $ 3.00 a pound.

It used to be that ground beef was, say, 30 cents a pound.
But 3 dimes were made of what -- oh yes, silver!
3 silver dimes today would cost you -- $3.00.
So the price of ground beef actually makes sense!

Matthew · « **Reply #2 on:** January 07, 2008, 03:26:56 PM »

Are you saying there's a problem with that logic?

It's true that a large portion (actually, most) of inflation can be explained by the devaluation of the dollar.

Since the Fed took over in 1913, the Dollar has lost something like 97% of its value!

In fact, food products should be more expensive than they currently are. Only mass-production, cutting corners, and other problem areas have allowed food to get so cheap.

Remember my post (General Discussion) about 1907? Eggs were 14 cents a dozen, the same time that people made 22 cents an hour. That would be like a dozen of eggs costing $4 today -- but yet they only cost $1.80 or so.

Matthew

Vandaler · « **Reply #3 on:** January 07, 2008, 04:08:19 PM »

I'm not sure there is much logic...
It reads more like a nursery rhyme on inflation. (Complete with rhyming numbers if there is such a thing)

Since 1913, the U.S. has grown into a gigantic economy. With a GDP of 13.2 trillion, it's more then the next four combined (Japan, Germany, China and the U.K)

It's not so bad.

But I'll concede to you that currency discussion is not my forte.

Author Topic: Here&#039;s why gas is $3 a gallon (Read 2988 times)

Author Topic: Here's why gas is $3 a gallon (Read 2988 times)