Depression Bologna
Henry: Mom, I think the Great Depression is beginning again.
Me: What makes you say that?
Henry: Well, Daddy bought bologna the other day and it only cost 88 cents. It seems like that was really cheap for bologna, don't you think? It was twelve pieces! And you said that things cost less during the Great Depression, so it must be starting again.
Me: Bologna is pretty cheap all the time. And things cost less during the depression because it was a long time ago. People make more money over time, so things cost more. It's called 'inflation.' Things actually cost more before the Great Depression. So the bologna was just a good deal.
Henry: Oh. Well that's good, I guess.
Me: What makes you say that?
Henry: Well, Daddy bought bologna the other day and it only cost 88 cents. It seems like that was really cheap for bologna, don't you think? It was twelve pieces! And you said that things cost less during the Great Depression, so it must be starting again.
Me: Bologna is pretty cheap all the time. And things cost less during the depression because it was a long time ago. People make more money over time, so things cost more. It's called 'inflation.' Things actually cost more before the Great Depression. So the bologna was just a good deal.
Henry: Oh. Well that's good, I guess.
