Dr.Jackpot

Pre-packaged Bankruptcy Is GM's Only Option - Barron's

Here's the math I just did on my H/P calculator. In 1940 my father bought the biggest Ford sedan new for $900. I'm just guessing today's cost at $40,000 what with sales tax, registration and all the mandated ripoffs. Divide 40,000 by 900 and you get an increase of 44.4 times the 1940 cost. Now take the 68th 'root' of 44.4 and this will give you the average annual compounded increase in cost for the 68 years. This works out to 5.736% per year compounded. So you can figure that no matter WHAT the government says-------inflation is going to be 6% compounded (or more) for the rest of your life and beyond.