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 I should have been presenting this as what it costs the grocery to buy your dollar from you because that's what he's doing he's buying the dollar from you and he's paying with soup and speaking of inflation strange way to start a video but there it is uh you know I find that the cost of going to a restaurant taking friends out to dinner is almost exactly double what it was just f 5 years ago and you know I know that the official statistics say that from January of 2020 to basically

today they don't have the data in yet to go any further than this but it's 22.3% is what they're claiming the cumulative total inflation is now I'm a car guy and so every once in a while I see auctions on cars and I mean it wasn't there live this online bringatrailer.com but here's a 1957 Thunderbird and I used to have a Thunderbird uh it was a 64 uh I really liked it a lot uh the Thunderbird was actually the most expensive car that Ford made uh during those periods Lincoln was a separate division so the

most expensive Ford was a Thunderbird uh this one uh went up for auction and was a no sale they turned down a bid of $200,000 it's a very special car uh because it's supercharged uh then there was also this one and I've got the reason I'm showing you these is they've got the um the window sticker I guess this is uh $688 and a penny for The Supercharged you know they they paid $340 extra for this engine and $150 for a transmission and oh my gosh power steering was 48 bucks uh oh that yeah and uh electric

window lifts 48 bucks uh and then the 70 amp battery the big battery a whole $527 upcharge quite amazing so the base price on both of these cars $ 23734 uh this one was $3,688 And1 Penny uh so that was for like a maxed out uh t- bird uh this is the uh window sticker for the other car if you have uh an older Ford you can get what's called a Marty report and so you can get this uh from Ford basically um and so the closest comparison that we have today would be the Ford Mustang and uh you have to

exclude these ones with EcoBoost that's a four-cylinder the the Thunderbirds were V8s and the supercharged one would sort of be like comparing it to this Mustang or this mustang and the other uh Thunderbird would be like comparing it to these so let's take the uh the least expensive one here uh to compare with that salmon colored one and the most expensive to compare with the supercharged one and to compare the salmon colored one this was the price of the t-d and this is the price of the brand new Mustang and uh

the the cars they've gotten much more efficient at making the cars they uh don't have to drill holes and screw anything anymore they just snap stuff together uh parts are there's there's large cast parts so it's not as many small parts going together there's a whole bunch of efficiency improvements and uh improvements at the factories and so the price of the car should have actually gone down not up but the loss in purchasing power of the dollar is 92 over 92% in that case and then when you

go with the supercharged one it's 94% if you're comparing it to that uh maxed out Mustang but the mustang that's the base price of that hopped up model uh I just out of curiosity built one online and it was about 85,000 no $82,000 uh by the time you added a bunch of extras and so on so uh you know get getting back to food uh I've been presenting uh a different version of this chart of the price of a can of Campbell Soup going all the way back to the year 1887 I believe no 1898 um and uh there there was I used to

present this on stage live uh back in 20 200920 and uh you know I wrote about it in my book in chapter 3 but so this is sort of an updated version he's talking about uh this is the single best longrun measure of food inflation and it's gone vertical uh now I have this in chapter three of my book but I've got a much better uh explanation of it because I realized uh that I was only showing telling half the story when I was showing that chart so if you click on on online chapters it'll take you to this

page click on chapter 3 not asking you for your email address or anything I just want you to read this because I I feel like it's very important actually what I what I used to show on stage back in 2009 10 11 um was an empty graph and then I'd sweep in uh the this line and the can of soup and there was a gold coin when we were under the gold standard and then uh I'd uh you know cross out the gold coin August 15th 1971 when Nixon nixed gold when he ended at the Breton Woods uh standard and then

continue the line on up now uh the data that was presented uh uh in uh bellagi uh when the the data that he's citing in his chart this comes from uh political calculations um this was not updated uh when I did my book I actually had to go to the websites and I did it myself I went to the websites of about 65 different uh grocery store chains discount grocery store chains across the United States California Washington the Chicago area uh I picked something in the midwest like Kansas uh New York both

New York City and Upstate New York Georgia and Florida and Texas I figured that was enough and I I came up with an average then but this was during the pandemic could have been Supply chains uh disruptions of a buck 43 per can was the average uh this is a 12month trailing average and uh so it's actually uh last last year uh and they're getting a buck uh 24 I don't believe it I think it's it's higher than that but anyway uh you go back to this I had a buck 43 uh for that last data point and that

equaled a 93% drop in the value which lines up with the cars perfectly and but I realized that this story wasn't done uh and I had been presenting that chart for years and I realized that just as the book was going to be published and all of the parts that were on paper were locked this chapter was not locked so I could update it and the second half of the story and what I should have done is flipped that chart upside down and shown the the loss in not the rise in price of the can of soup the can of soup

everybody was getting more and more efficient at doing their job when it came to digging up the iron to make the can like those old cans used to be uh rolled and then soldered there was a seam on them uh and so there was a lot of work into making a can you didn't just bang out an aluminum can in a a few microseconds uh and the same thing when it comes to Growing the tomatoes and processing everything printing a label uh everything has gotten super efficient that can of soup should have fallen from

10 cents to maybe three four 5 cents at the most today if we were still using money so what I should have done is flip this chart upside down and put a line of demarcation between money and the currency era that we are in now but you can see this incredible loss of purchasing power then uh I should have been presenting this as what it costs the grocery to buy your dollar from you because that's what he's doing he's buying the dollar from you and he's paying with soup uh people don't look at

things this way but there's that 93% loss of purchasing power uh when we used real money a dollar was very expensive it took 10 whole cans of soup to buy that dollar sometimes it took 12 cans of soup to buy that dollar this goes up and down above and below is 8 cents for a can of soup at one time and so to buy that dollar the dollar was very expensive now the dollar is so cheap that he only needs a fraction of a can of soup to buy that dollar from you please like And subscribe I hope you liked this video and we'll see you next

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