April 8, 2041 (Tuesday )
I recently viewed an old movie that was set in 1941.
If I had seen the movie in 1941, I would not have noticed some of the things that seem to jump off the screen and yell at me. One of the scenes showed the main character buying ten gallons of gasoline. After checking the tires and radiator, etc. the station attendant was asked, “How much do I owe you?,” and he replied, “two dollars!”
Just for fun, I went to the internet and found an inflation calculator and asked how much an item would cost today if it cost $2.00 in 1941, and the answer was $31.79, exactly what I have recently paid for gasoline. That means that gasoline is priced today in line with inflation and is not overpriced. That surprised me.
The other scene that I noticed was the price of a package of cigarettes in 1941: twenty-five cents. Prices vary today, but it would not be unusual to pay $6.35. A normally inflated price, according to the inflation calculator, would be $3.97. The difference is taxation. The price in 1941 charged little if any tax, but the 2014 price is one-half taxes. That’s mostly due to heavy tobacco taxes levied to discourage tobacco consumption (and enhance government coffers). Again, however, if I had seen the movie in 1941, I would not have paid any attention to the price. In 2014, though, it jumps out at the viewer–especially if he/she is a smoker.
Speaking of 1941 prices, back then bread was eight cents, a gallon of milk, twenty-nine cents, etc. It must be remembered, however, that wages were still quite low as the depression was gradually losing its hold on the economy. World War 2 would soon change everything.