Michael
Thanks for the analysis
I suspect that if the same analysis was done to the costs of many of the
items that we are now getting from overseas (especially China), that the costs
are actually below 1957 because of very inexpensive cheap labor costs.
Cary
In a message dated 10/8/2005 9:28:16 PM Pacific Standard Time,
portermd@zianet.com writes:
Cost has to be considered against purchasing power. In 1957, the
minimum wage was $1/hr. Accounting for inflation, one would have to
make $6.80 to have equivalent buying power today. Since the minimum
wage is now $5.15, purchasing power is 75% of what it was in 1957. The
cost for a replacement piston/liner set for wet-sleeve engines closest
to stock is from BPNW (and an 86mm set, at that, no 83mm set available)
is $604. So, in actuality, wages have increased 5.15 times since 1957,
but prices have increased 6.05 times. In 1957, 100 hours of labor
bought a piston/sleeve set, while in 2005, it requires 117 hours of
labor to buy the equivalent parts. While manufacturing costs have gone
down with improved processes, in the U.S., purchasing power has declined
at a greater rate.
Cheers.
--
Michael D. Porter
Roswell, NM
Never let anyone drive you crazy when you know it's within walking
distance....
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