Be thankful for the increase in knowledge that transforms atoms into valuable resources.
Professor Jeremy Horpendahl has provided updated numbers on the percentage changes in four products essential to enjoying our Thanksgiving holiday. The products include a turkey dinner, gasoline, airfare, and wine. The Farm Bureau reports the prices on a typical thanksgiving dinner. The Energy Information Administration reports gasoline prices and the Bureau of Labor Statistics reports the price of airfare, wine and wage rates.
Remember it’s not how expensive things are, it’s how affordable they are that counts. To measure affordability we must compare prices to wages. This is what time prices do for us. A time price is simply the money price divided by hourly income. While the money prices of our four essential items has decreased from 0.8 percent to 13 percent, hourly income has increased by 4.4 percent. This means personal abundance has increased by 5.2 to 20 percent.