Since 1933, inflation has increased 1,627.23%. To calculate its decimal equivalent you need to move the decimal point two places to the left. So 1,627.23%=16.2723 in decimals. This means that what cost $1.00 in 1933 costs approximately $16.27 today.(3)
The average American’s annual income in 1933 was $1,550.00. Today, that would be the equivalent of $25,218.00. According to the last Bureau of Labor Statistics report for 2009(4), the average American’s annual income was $28,592.00 (mid range between highest and lowest by State for 1 person). This may seem like we’re ahead of the game compared to the Great Depression. However, when you consider that the lowest bracket of income tax was levied at 4% in 1933 compared to 15% in 2010, you can see that we are almost on par. But you also must consider the plethora of other taxes and deductions that have since been siphoned out of the average American’s paycheck. Contemporary sales taxes and compulsory enrollments like mandatory insurance (both auto and health) must also be added into the equation to get a better gauge as to where we are now compared to days gone by.(5)
Prices of things, on average, were much more affordable back during the Great Depression than they are now. Here are some basic items for comparison:
Cost of a new house 1933: $5,750.00 (equivalent to $93,565.72 in 2010)
Cost to rent a house in 1933: $18.00 per month (equivalent to $292.00 in 2010)
Brand New Plymouth in 1933: $445.00 (equivalent to $7241.17 in 2010)
Gallon of gas in 1933: 10 Cents (equivalent to $1.62 in 2010)
Loaf of Bread in 1933: 7 Cents (equivalent of $1.13 in 2010)
1 Lb. Of Hamburger Meat in 1933: 11 Cents (equivalent to $1.79 in 2010)
Can of Campbell’s Vegetable Soup in 1933: 10 Cents (equivalent to $1.62 in 2010)
Dozen Eggs in 1933: 5 Cents (equivalent to 81 Cents today)
Take the equivalent monetary values listed above for 2010 and do your own research. Can you buy the same items today for that little cash? According to the 2009 census, the cost to rent a house is approximately $775.00 per month, on average. The cost of even the cheapest automobile is in the tens of thousands and I don’t need to tell you about everyday household goods. Consider these the good times. When hyperinflation sets in, these prices will soar. We don’t live today like they did back in the 1930’s when people were, at most, one generation removed from the farm. As was pointed out previously, 27% of American workers made their livings on the farm and were able to provide many of their own basic needs from that culture. Today, that number is only 2%.
Despite this data, deniers will refuse to believe that they are living through a depression.