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Purchasing Power Question

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Author Previous TopicReplies: 6 / Views: 1,359Next Topic  
Valued Member
-JJH-'s Avatar
Finland
79 Posts
 Posted 10/17/2007  04:06 am Show Profile   Bookmark this topic Add -JJH- to your friends list Get a Link to this Message Number of Subscribers
Hi all,
I'm mainly collecting coins and banknotes from four countries/empires, that do not exist today, or at least they do not exist in same form anymore.

These are:
Austro-Hungarian Empire (1867-1918)
Great Imperial Japan (1868-1945)
Germany (Third Reich) (1933-1945)
Soviet Union, in form of USSR (1924-1991)

What I'm looking for now, are some sort of tables/calculators or any information about the purchasing power from these countries, in the mentioned time range. Of course, it would be nice to have some comparison to today's US dollars or Euros :)

This question about purchasing power intrigues me, for I have no idea, how much for example a loaf of bread cost in 1880 Austro-Hungary, in 1900 Japan or in 1940 Germany? How much was a pair of shoes, or a horse/car? How much was a weekly/monthly/annual salary for average worker? Etc.?

Now, I might purchase a nice looking 1 Kreuzer copper-coin from year 1881, but I have no idea about the 'worth' of the coin; how long an average Austro-Hungarian might have worked for the coin and what he might have done with this coin? Was it for purchasing a week's meal or was is worth next to nothing?

All I know at the moment, is that before the war, a Volkswagen was supposed to cost around 1000 Reichsmark, but that's it...

Any help is appreciated,
-JJ-
Pillar of the Community
Peter THOMAS's Avatar
Australia
2830 Posts
 Posted 10/17/2007  09:08 am  Show Profile   Bookmark this reply Add Peter THOMAS to your friends list Get a Link to this Reply
G'day, I have attmpted a similar exercise, but not in relation to any of the countries you are researching.
I found that when reading texts devoted to political, or economic, or social history, I might stumble across references to the price of bread, or raw wheat, and occasionally, cheese. Sometimes, I would find references to agricultural or other labourers' wages. If you read military or naval history, you might be lucky to find a mention of a soldier or a sailor's wages: bear in mind that these were often lowly-paid, but they had better security of employment, if they didn't die.
Another angle, for wider comparison, might be to look at the intrinsic value of the coinage. Until the 20th Century, coins had a nominal value that was close to the intrinsic value of the metal. Austria-Hungary had gold coinage, so that enables you to compare its currency to other countrird using gold. As I understand it, gold was circulated upto WW1. Gold coins were still produced thereafter, but were not generally circulated at their face value.

There are essential and inescapable differences from place to place. The differences over time, in one place, might be significantly less. For example, the price of a kilo of rice, a staple in Japan, is determined by a market with many buyers and many sellers. The price of rice at other times, in other places, is not the subject of comparable factors. In those other places, the price of potatoes, or wheat, or something else, might give a better comparison, over time.

At the end of your task, I fear that your comparisons will be of limited value - which is not to say, "no value". I wish you well,

Peter in Oz

New Member
United States
16 Posts
 Posted 10/17/2007  4:26 pm  Show Profile   Bookmark this reply Add wova4 to your friends list Get a Link to this Reply
Every now and then I get this question about U.S. currency at the reference desk (I'm a librarian). There is an nice reference book in this case, called The Value of a Dollar which larger public libraries and most academic libraries should have.

I suppose a similar book exists in other countries. Finding them for Germany, Austria, or Russia probably isn't easy. For example, this might be a similar book for Germany. Unfortunately, my German isn't good enough to know exactly what it covers.

Another tack you could take is to look for advertisements in periodicals of the day for prices. This assumes you can read the languages and have access to a library that has that sort of stuff (or can find it digitized).
Valued Member
Malaysia
59 Posts
 Posted 10/18/2007  03:11 am  Show Profile   Bookmark this reply Add sakura to your friends list Get a Link to this Reply
Prices of some items in 19th century Japan :
http://www.storyanime.com/Resources/Money.htm
Valued Member
-JJH-'s Avatar
Finland
79 Posts
 Posted 10/19/2007  04:34 am  Show Profile   Bookmark this reply Add -JJH- to your friends list Get a Link to this Reply
Thank you, sakura, that sort of tables I was looking for and this is a good start to my quest :)

-JJ-
Pillar of the Community
Germany
1238 Posts
 Posted 10/19/2007  1:50 pm  Show Profile   Bookmark this reply Add chrisild to your friends list Get a Link to this Reply
quote:
All I know at the moment, is that before the war, a Volkswagen was supposed to cost around 1000 Reichsmark, but that's it...

Problem is that this was a political goal of the nazis rather than a realistic price. The KdF-Wagen or Volkswagen was supposed to cost 990 RM, and people could sign up for savings plans ... but this program started in 1938, shortly before WW2. As far as I know that KdF-Wagen was (except for a few prototypes) never commercially produced.

Also, most prices in Nazi Germany were government controlled. So the official inflation rate was relatively low. To prevent people from consuming much, a certain part of the salary went into "iron accounts". Those were like savings accounts, you would get the usual interest rate, except that the money was not supposed to be disposable until the, errm, final victory. The consumer price index (base 1913/14 = 100) went from 121.1 (1934) to 126.2 (1939) to 141.4 (1944).

The average annual salary was 1637 RM in 1934 and 1986 RM in 1939 (no info for the war years). The average hourly wage was 78.3 Pf in 1934, 79.1 Pf in 1939 and 80.9 Pf in 1943. And here are some food prices (pf/kg or pf/l) for 1933-1938. Again, I have no info about the war years but then again food was rationed between 1939 and 1949.

Rye Bread 45 45 44 44 44 44
Sugar 76 77 78 77 77 77
Veal 157 164 181 217 209 206
Poultry 190 198 219 263 253 250
Eggs (1 egg) 10 11 11 11 11 12
Milk 15 17 16 17 17 17
Coffee 551 533 529 525 521 525
Beer 76 76 75 76 75 75

Apartment cost (rent) stayed at 121 (index 1913=100), heating/electricity was around 125. Clothing: 107 (1933), 111, 118, 120, 126, 130. All these prices are from W.Trapp/T.Fried, Handbuch der Münzkunde und des Geldwesens in Deutschland ...

Christian
Valued Member
-JJH-'s Avatar
Finland
79 Posts
 Posted 10/22/2007  05:35 am  Show Profile   Bookmark this reply Add -JJH- to your friends list Get a Link to this Reply
chrisild, you're right; the problem in evaluating the purchasing power in Third Reich is very problematic, due to the government controlled prices and forced salary savings etc.. Of course, how much did food or commodities actually costed in black markets, that is also very hard to evaluate. Thus I have to settle with 'official' numbers.

Thanks for the info about bread, sugar and other stuff, also helping me out on the average worker salary question is great. Thank you! :)

-JJ-

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