Magic of the Marketplace
The image shows the cost of two colour televisions in 1964, expressed in 1964 dollars and in 2010 dollars. It is taken from this blog posting, which goes on to outline what consumers can buy in 2010 with the same money. The same amount of money (in constant dollars) that you needed in 1964 to buy one television today can buy eight brand-new kitchen appliances and nine state-of-the-art electronic items. The "magic of the marketplace" (competition) is responsible for this amazing progress.
By way of contrast, education spending per student, in constant dollars, has approximately tripled since 1964. Has there been a corresponding improvement in what this money can buy? I'll let you be the judge.




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