[Elecraft] Price Comparisons

[Lew Phelps K6LMP]

Using the Consumer Price Index as an adjustment mechanism, prices have risen by 360% between 1977 and 2011. That is, to buy something worth $100 in 1977, you'd have to pay $360 today.  Another inflation adjustment mechanism that most economists consider more useful is the Gross Domestic Product Deflator.  It shows a slightly lower rate of inflation -- mere $293 in 2011 equivalent to $100 in 1977. Inversely, $1.00 in 1977 is the same as 27.7 cents today. 

You can run any CPI or GDP calculation at http://www.measuringworth.com/.  It will calculate inflation between any two years (US Currency) from 1774 to the present. 

In the following table, I have converted the prices quoted by Fred Jensen into equivalent current prices using the GDP Deflator.  The prices are mind-boggling.  What this shows is that amateur radio equipment is a MUCH better value today than it was in 1977.  Can you imagine paying #25K for a linear amplifier? Or $16K for a transceiver?  

For rough comparison purposes, a fully loaded factory-assembled K3 (subreceiver, 100 watt internal amp, ATU, 2 meter transceiver, P3 panadapter, full set of 8-pole filters, etc -- the works) would cost about $8,000, or almost exactly half the cost of a KWM2A.  And  yet it has vastly better capability than the Collins rig.  If you compare to the value of any other manufacturers' rigs, YMMV.  Thank you, Eric and Wayne!
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Equipment                      COLLINS PART NO.              LIST PRICE 	EQUIVALENT 2011 PRICE
KWM2A TRANCVR                  522-1792-000                  $3533.00		$12,718
KWM2A TRANS W/BLKR             522-1792-011                   4427.00		$15,937
75S3C   RECVR                  522-3317-000                   3000.00		$10,800
32S3A   TRANS                  522-2956-000                   3250.00		$11,700
30S1 LINEAR AMP                522-1286-000                   7049.00		$25,376
30L1 LINEAR AMP                522-2375-000                   1689.00		$ 6,080

With respect to Jimmy Carter's presidency, which someone mentioned in an earlier post, overall inflation during his term in office was about 40%, or 9% compounded annually. That is, $1.00 at the beginning of his term was worth 71 cents when Reagan took office. By comparison, inflation in the following four years, the first Reagan term, was 18%, and 37% for Reagan's eight years in office, or about 4% per year compounded. 

73

Lew K6LMP