The cost of Amazon Prime, the two-day delivery program for Amazon, will soon rise when measured in U.S. dollars, but continues to fall if you store your wealth in gas, coffee, and most other products.
The dollar price of Amazon Prime will rise 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 has declined over the past nine years, by 27 percent in gas and 53 percent in coffee.
This is not surprising since the Amazon is much more efficient now. In fact every business is more efficient and all prices should be falling.
The dollar price rose because there are twice as many dollars, which were created by banks to fund the U.S. federal government’s deficit and low-interest loans, all at the expense of savers. The value of the new dollars comes from all existing dollars.
What would be the price of Amazon Prime if the banks, including Federal Reserve, had not doubled the number of dollars? …….. $49. Half the current higher price. Doubling the number of anything reduced their value by half compared to what their value would have been if the quantity had remained the same.
If you had inherited 1,000 dollars in 2005, that would have paid for about 13 years of Amazon Prime (1,000 divided by 79). Now, 1,000 dollars can only pay for 10 years (1,000 divided by 99). Had you inherited 1,000 dollars worth of coffee (hypothetically stored somewhere), that coffee could now pay for about 16 years of Amazon Prime. So if you’re going to leave an inheritance for someone, don’t give them dollars.