Here is a page depicting the 1946 Cost of Living! In 75 years how did we get to the prices of today?
I am no economist, but I put it down to Compound Interest Charged on loans. For example, my parents bought their house, a three story 3 bedroom home with basement for $1500.00. When I sold it I got $35,000.00 for the house. To buy an equivalent house in 1983, would have cost $40,000.00.
Now if my parents had taken a loan out to buy the house at @7 % interest they would have to get the $35,000 equity out of the house.
Other items affected by CI is the price of food, wages, etc. I would suggest that the buying power of todays wages is comparable to those in 1946.
I remember as a kid, a quarter meant you were rich and could buy a pop, a chocolate bar, and have change for a pocket full of candy.
