On: Why Coke Cost A Nickel For 70 Years

[propercoil]

Because the federal reserve wasn't printing money like crazy and devaluing the currency. When comparing the price of a Coke with real money - gold or silver the price hasn't changed

[icebraining → propercoil]

Actually, it did. Coke remained fixed in USD, so it had to change relatively to "real money".

EDIT: I was wrong, sorry. I got the wrong impression from the podcast.

[throwit1979 → icebraining]

Nope.

Throughout the relevant 70 year timespan, Coke was priced in an environment of first, the gold standard, and second, Bretton Woods.

The USD was not fully disconnected from gold until 1971, which is after the timespan the article talks about.

[propercoil → throwit1979]

beat me to comment the same thing - the gold standard. I don't understand why he question marked "real money", i think he thinks the paper money he holds is money and not gold. Let's wait a couple of years

[icebraining → propercoil]

You're right, I got the wrong impression from the podcast, which is stupid since I knew about the gold standard and price stability of the time.

As for the "scare quotes", I'm aware of the drawbacks of fiat money, but it's still money. Gold is just non-fiat money.

[darkarmani → propercoil]

Someone posted that an ounce of gold was $20.65. If we say a bottle of coke is $1.00 today, then gold must be hanging around $412.00 an ounce?

[kragen → darkarmani]

Yes, it's only about four times that.