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Author: 2old4bs Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 740113  
Subject: 'Real' Inflation Numbers Date: 5/24/2004 8:44 AM
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In sifting thru some papers of a deceased relative I ran across a monthly budget prepared by the City of New York, Department of Welfare. It was prepared in March of 1943 (aside--the printed postmark on the envelope is stamped “Buy War Savings Bonds and Stamps). This budget was for a family of 4, (2 parents, 2 kids). I found it interesting to see some 'real' numbers from 60 years ago to illuminate some of the actual effects of inflation:

Food $39.10
Shelter (rent) 18.00
Cooking fuel 2.00
Heating fuel 7.80
Electricity 1.40
Clothing 7.80
Household .80
Personal 1.40

Total $78.30

Cross-posted to LBYM and Retirement Investing Boards…

2old

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Author: lowstudent Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 170082 of 740113
Subject: Re: 'Real' Inflation Numbers Date: 5/24/2004 8:55 AM
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"I found it interesting to see some 'real' numbers from 60 years ago to illuminate some of the actual effects of inflation"

From looking at the figures, I would say the moral of the story is to invest in Rental real estate and trends dealing with the the expansion of presonal spending!



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Author: Rocannon Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 170136 of 740113
Subject: Re: 'Real' Inflation Numbers Date: 5/24/2004 2:11 PM
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I notice there's no healthcare category in this budget.

Rocannon

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Author: Evelynk Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 170138 of 740113
Subject: Re: 'Real' Inflation Numbers Date: 5/24/2004 2:14 PM
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The shelter portion of this budget surprised me. Just yesterday, DH found a Minneapolis newspaper from 1942 in our basement. We were looking at the rentals in the classified ads. I saw a 5-room apt. that cost $45/month.

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Author: 1HappyFool Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 170139 of 740113
Subject: Re: 'Real' Inflation Numbers Date: 5/24/2004 2:19 PM
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I notice there's no healthcare category in this budget. -- Rocannon

This was a budget for the Dept. of Welfare. Healthcare was handled by another charitable department because welfare recipients couldn't be trusted to hold onto that money until it was needed.

1HF


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Author: Adenovir Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 170199 of 740113
Subject: Re: 'Real' Inflation Numbers Date: 5/24/2004 5:41 PM
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Food $39.10
Shelter (rent) 18.00


Look at the ratio of food to shelter cost, more than 2:1. I would think that these days, it would be the other way around, with shelter cost being double that of food. Probably another sign of our housing bubble, soon to come to an end.

Adenovir

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Author: andrew61 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 170308 of 740113
Subject: Re: 'Real' Inflation Numbers Date: 5/24/2004 11:54 PM
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The shelter portion of this budget surprised me. Just yesterday, DH found a Minneapolis newspaper from 1942 in our basement. We were looking at the rentals in the classified ads. I saw a 5-room apt. that cost $45/month.


In 1965, when I was a little kid, we moved to a 4-room apartment (the upstairs unit of a double house) in Cleveland where our rent was only $40 a month.

A year later, the landlords -- an elderly couple -- sold the house to another elderly couple who promptly raised our rent to $45. My dad thought that rent increase was a really big deal.



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Author: 2old4bs Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 170402 of 740113
Subject: Re: 'Real' Inflation Numbers Date: 5/25/2004 1:50 PM
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The shelter portion of this budget surprised me. Just yesterday, DH found a Minneapolis newspaper from 1942 in our basement. We were looking at the rentals in the classified ads. I saw a 5-room apt. that cost $45/month.

Surprised you because it was 'high', or because it was 'low'? The $18 was for a 1 bedroom apartment in Brooklyn, NYC (also called a 3-4 room apartment). Does a 5-room apt in Minneapolis have 2 bedrooms? Here it does, and it almost doubles the rent!

2old



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Author: Evelynk Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 170430 of 740113
Subject: Re: 'Real' Inflation Numbers Date: 5/25/2004 4:09 PM
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Surprised you because it was 'high', or because it was 'low'? The $18 was for a 1 bedroom apartment in Brooklyn, NYC (also called a 3-4 room apartment). Does a 5-room apt in Minneapolis have 2 bedrooms? Here it does, and it almost doubles the rent!

2old


I guess I thought an apartment in NY would be more than one in MN. The apartment I described is in a 20's stucco 6-plex in my neighborhood. I think a five-room apt. would have two small bedrooms, a living room and a separate dining room. Now, the same place would go for about $900 or so.



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Author: 2old4bs Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 170472 of 740113
Subject: Re: 'Real' Inflation Numbers Date: 5/25/2004 6:16 PM
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I think a five-room apt. would have two small bedrooms, a living room and a separate dining room. Now, the same place would go for about $900 or so.

Couldn't touch that for under $1200 in NY--in Manhattan would cost over $3000. {SOB}

2old


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