Amazon Prime cheaper in commodity terms



Incoming from Dave Doctor at Monetary Choice:

The dollar price of Amazon Prime, the two-day delivery program for Amazon, rises on April 17th to $99, from the original $79 price set in 2005, a 25 percent increase. However, when measured in gallons of gas and pounds of coffee, the price or cost declined, by 27 percent in gas and 53 percent in coffee. This is not surprising since Amazon is much more efficient now. The dollar price rose because there are twice as many dollars, created by banks to fund the U.S. federal government’s deficit and low-interest loans, all at the expense of savers.

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One reply on “Amazon Prime cheaper in commodity terms”
  1. says: chuck martel

    OK, both gas and coffee prices have increased dramatically in dollar terms since the Amazon Prime debut in 2005. Some other commodities have not. Tea, for instance, has dropped a little less than 1% since then in nominal terms, bananas have increased 6% and peanut oil has gone up about 12%. Nevertheless, your point is well taken, enpixelation of money has raised prices of most things.

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