What is $5,000 worth today, and is it better than 1,600 in the 80's?


Hey Everyone,
So I found this nifty inflation calculator:
https://www.usinflationcalculator.com/
So today if you spent $5k on a piece of gear, it's the equivalent of around $1,600 in 1980.

What do you all think. Is gear better or worse?  Does your modern day $5k buy you more or less gear than $1,600 did in 1980?


Erik
erik_squires

Showing 2 responses by andy2

The theory is basically the same but the implementation is much better now.  I am not an economist so I don't know enough of inflation (except that it goes higher and higher), but the quality of equipment is "much" better now.  Such examples as capacitors, cables, digital technology, DAC's are all superior vs. back in the 1980's.  

Is $5000 better than $1600?  It depends I think.  A $5000 refrigerator today probably does not have the same value as a $1600 refrigerator back in the 1980's, but a $5000 DAC today is much superior than a $1600 DAC in 1980's.  

In general, things that can be outsourced tend to be "cheaper" today.  Conversely things that cannot be outsourced, they tend to get more "expensive".  For example, a trip to get your car repaired probably costs quite a bit more vs. back in the 1980's.