The Burbank Tribune (Grandpa White's newspaper in the 1920's)

THE RISING COST OF LIVING OVER THE DECADES | November 9, 2012

I want to know, does anybody ever question this? Why?

There is an old saying, “If it works, don’t fix it”.. but everyone is always trying to fix it and now look where we are! “FIAT MONEY’…

On June 5, 1933, the United States went off the gold standard, a monetary system in which currency is backed by gold, when Congress enacted a joint resolution nullifying the right of creditors to demand payment in gold. The United States had been on a gold standard since 1879, except for an embargo on gold exports during World War I, but bank failures during the Great Depression of the 1930s frightened the public into hoarding gold, making the policy untenable.

John Maynard Keynes, the famous economist, once wrote, in “The Economic Consequences of the Peace”:

“There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.”

Thomas Paine called for the strongest penalties for an official who might connive at going off the gold standard:

“As to the assumed authority of any assembly in making paper money, or paper of any kind, a legal tender, or in other language, a compulsive payment, it is a most presumptuous attempt at arbitrary power. There can be no such power in a republican government: the people have no freedom — and property no security — where this practice can be acted: and the committee who shall bring in a report for this purpose, or the member who moves for it, and he who seconds it merits impeachment, and sooner or later may expect it.”

Paine called for the strongest penalties for an official who might connive at going off the gold standard:

“As to the assumed authority of any assembly in making paper money, or paper of any kind, a legal tender, or in other language, a compulsive payment, it is a most presumptuous attempt at arbitrary power. There can be no such power in a republican government: the people have no freedom — and property no security — where this practice can be acted: and the committee who shall bring in a report for this purpose, or the member who moves for it, and he who seconds it merits impeachment, and sooner or later may expect it.”

The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world’s major industrial states in the mid-20th century. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nation-states.

Preparing to rebuild the international economic system as World War II was still raging, 730 delegates from all 44 Allied nations gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, United States, for the United Nations Monetary and Financial Conference. The delegates deliberated during 1–22 July 1944, and signed the Agreement on its final day.

Setting up a system of rules, institutions, and procedures to regulate the international monetary system, the planners at Bretton Woods established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), which today is part of the World Bank Group. These organizations became operational in 1945 after a sufficient number of countries had ratified the agreement.

The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate by tying its currency to the U.S. dollar and the ability of the IMF to bridge temporary imbalances of payments.

On 15 August 1971, the United States unilaterally terminated convertibility of the US$ to gold. This brought the Bretton Woods system to an end and saw the dollar become fiat currency.[1] This action, referred to as the Nixon shock, created the situation in which the United States dollar became a reserve currency used by many states. At the same time, many fixed currencies (such as GBP, for example), also became free floating.

Cost of Living 1930

How Much things cost
The Yearly Inflation Percentage USA ? UK – 2.8%
Average Cost of new house $7,145.00
Average wages per year $1,970.00
Cost of a gallon of Gas 10 cents
Average Cost for house rent $15.00 per month
A loaf of Bread 9 cents
A LB of Hamburger Meat 13 cents
Magic Chef Gas Cooker $195.00
Pontiac Big Six Car $745.00

Cost of Living

How Much things cost in 1940
Average Cost of new house $3,920.00
Average wages per year $1,725.00
Cost of a gallon of Gas 11 cents
Average Cost for house rent $30.00 per month
Radio $16.95
Average Price for a new car $850.00
Battery for Torch 10 cents
Hoover $52.50

Money and Inflation 1950’s

To provide an estimate of inflation we have given a guide to the value of $100 US Dollars for the first year in the decade to the equivalent in today’s money
If you have $100 Converted from 1950 to 2005 it would be equivalent to $835.41 today

In 1950 a new house cost $8,450.00 and by 1959 was $12,400.00 More House Prices
In 1950 the average income per year was $3,210.00 and by 1959 was $5,010.00
In 1950 a gallon of gas was 18 cents and by 1959 was 25 cents
In 1950 the average cost of new car was $1,510.00 and by 1959 was $2,200.00 More Cars and Car Prices

omy 1960
President:  Dwight D. Eisenhower 
Vice President:  Richard M. Nixon 

Population: 
180,671,158 
Life expectancy:  69.7 years 

Dow-Jones 
 
High:  685 
Low:  566 

Federal spending: 
$92.19 billion 
Federal debt:  $290.5 billion 
Inflation:  1.4% 
Consumer Price Index:  29.6 
Unemployment:  5.5% 
Prices
Cost of a new home:  $16,500.00 
Cost of a new car: 
Cost of a first-class stamp:  $0.04 
Cost of a gallon of regular gas:  $0.31 
Cost of a dozen eggs:  $0.57 
Cost of a gallon of Milk:  $0.49 
Economy
President:  Richard M. Nixon 
Vice President:  Spiro T. Agnew 

Population: 
205,052,174 
Life expectancy:  70.8 years 

Dow-Jones 
 
High:  842 
Low:  669 

Federal spending: 
$195.65 billion 
Federal debt:  $380.9 billion 
Inflation:  6.5% 
Consumer Price Index:  38.8 
Unemployment:  3.5% 
Prices
Cost of a new home:  $26,600.00 
Cost of a new car: 
Median Household Income:  $8,734.00 
Cost of a first-class stamp:  $0.06 
Cost of a gallon of regular gas:  $0.36 
Cost of a dozen eggs:  $0.62 
Cost of a gallon of Milk:  1.15 
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