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Price/Cost Indexes from 1875 to 1929

United States

October, 1993 expanded for release in November, 1993

WHILE IT APPEARS THAT COMPUTERS ARE AN INCREDIBLE DEAL THEY ARE REALLY TWICE AS GOOD A DEAL AS IT SEEMS TO BE

WHERE DOES OUR MONEY GO?

Many of you are aware that the ,000 you spent on computers last year could be replaced by ,000 spent today. However, only recently have I actually purchased computer gear that I bought with dollars that were only half as valuable as those with which one of my drives was purchased in 1979.

Many of you are aware that the average personal computer was ,000 - ,000 some 10 - 15 years ago when Apples and IBMs first appeared on the scene, but you might not be aware of a trend beyond the price reduction that makes today's computer prices an even better bargain in comparison.

In fact, computers today are TWICE as good a bargain as they appear in comparisons with those early computers, and it was already looking as if they were bargains beyond all belief.

In earlier articles I mentioned the fact that today's cheapy 486 DX2/66 computers were 100 times as fast as the originals from IBM, and were likely to also have 100 time as much hard drive storage.

Here are a few examples to jog your memory:

These are "bare bones" prices for the computer systems; when filled out with color monitors, printers, ports, modems, and the rest of an average computer system, these prices usually doubled, and the prices I usually quote as modern comparison figures include VGA, printer, modem, mouse, and software.

Back in those days extra floppy drives from Apple or IBM for around 5 to 5 respectively 1993 6 per 1000M at $.67/M 1994 4 per 1000M at $.44/M 1994 6 per 1000M at $.30/M 1995 8 per 1000M at $.20/M 1996 2 per 1000M at $.13/M 1997 per 1000M at $.08/M 1998 per 1000M at $.06/M 1999 per 1000M at $.04/M 2000 per 1000M at $.03/M 2001 per 1000M at $.02/M 2002 per 1000M at $.01/M


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