[Milsurplus] Inflation Memories

[J Forster]

Mike Morrow wrote:

> >No, not numerically. But a VW cost under $1000 in the late 60s
> >and costs over $20,000 today. Inflation is at least 20x since WW II.

I lent a co-worker $1000 to buy a Beetle in about 1965 or 66.

> Having priced new VWs in 1970 (as a new college student), I well remember that the minimum price for a new VW Beetle was closer to $2500 back then.  A 1970 dollar is worth $5.37 in 2007.  Way too rich for me!
>
> So, inflation hasn't been quite that bad.  Perform the calcs at:
>
> http://www.bls.gov/cpi/  Click on "Inflation Calculator."

The government clearly fudges the numbers on inflation, because it's in their interest to keep the 'official' numbers low. Social Security and other benefit programs are indexed to the official numbers.

-John