Monetary Education Series #2: Where Is All the Penny Candy?
Have you ever heard your grandparents talk about a nickel for a milkshake? What about exchanging a few pennies for candy bars?
In my hometown, there is a candy store that has been in operation since 1928. Part of the candy store is designated for milkshakes and ice cream. When you look along the walls you’ll see signs from the early days of the shop - some of those signs advertise milkshakes for 5 cents.
We hear the terms deflation and inflation, and think they may be fancy terms used by bankers and economists. *** The truth is, those terms are the foundation for why a milkshake costs more than a nickel now.***
The most helpful image I have learned for this is prices acting as a sponge for excess currency.
Part of the job of central bankers is to increase (inflation) or decrease (deflation) the supply of currency in circulation. When the federal reserve says they are practicing quantitative easing, what they are doing is increasing the supply of money.
That increase in currency funds the expansion of businesses and stock markets. It is a useful tool for quick growth, but unless the hard decision of deflation is made consequences will follow.
Those consequences are the prices of everyday goods rising to meet the currency created.
The price of a new car today would of bought a modest home in those olden days lol.
Quite true!
Actually for a little while those "penny candies" were 2 for a penny. It wasn't that long ago, was it? I was a kid. Well I am a grandfather now, so maybe.
It doesn’t seem that long ago. I’m in my twenties and still remember gasoline for less than $1 a gallon in the states.
The lowest gas prices I remember clearly is .38 per gallon for regular "leaded" gas.
Wow, I don’t recall ever seeing “leaded” gasoline.
I'm more than twice your age though. I'll be 60 in a couple of months.
Things are costing more and more dollars over time.... but less and less bitcoins...
Amen...
This just seems too good. I suppose I need to get more into this Bitcoin thing.
The End of Money as We Know It This is a great documentary on Bitcoin.
one time when my younger son, Colin, came to visit from B. C. he wanted to tour all the old houses where we lived and visit the local candy store near his elementary school. He was disappointed that the penny candy had disappeared - and this was his memory from the early 90's . He grew up largely without computers and playing outside and penny candy were a big part of his childhood. Sad...
I did not expect to read that. Most penny candy signs I have seen were at least 30-40 years old.
I consider arbitrary inflation, a.k.a. "quantitative easing," as practiced by "governing authorities" to be tantamount to theft.
When the fed prints more dollars, they are in reality reaching into my personal store of dollars and removing value. I am being robbed.
😄😇😄
Amen, and amen. :)
Brings back fond memories...... 😀
Haha, good! 😄
👍🏼😎
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Yaaa right sir I do agree with you.