In the classic example of falling prices, we always examine technological advances in personal computers. I'm looking to buy a DVD burner now and they are a whole lot cheaper than my first simple CDROM reader of the early 1990's. I once paid nearly $500 for an 80 megabyte (not gigabyte) hard disk. Now we get a thousand times more space at a quarter of the price. I will also admit that technology is constantly providing many new and interesting goodies to buy.
Yet, it's not only hi-tech items that appear cheap. I went to Sears yesterday ... okay, it WAS an outlet store, but I'm often amazed at prices. I am sure that a good pair of dress shoes cost the same or less now than when I was a child. Ditto for an average bicycle. Big box stores can offer a microwave oven at practically give-away prices. (I bet every dorm room nowadays has one unlike during my college days -- in the late 70's & early 80's.)
If we examine the hours of work needed to purchase many basic goods and services, I think we've moved considerably ahead in the last thirty years. As proof, I'd like to suggest that most households own a greater quantity of junk than ever before. I'm sure this phenomena can be traced to many facts:
We've conditioned ourselves to think of inflation as a normal fact of life. Maybe it isn't. You may or may not share my views. What do you think? Jot out a message to me.
When people can save a few pennies they often choose the cheaper of two items. This helps explain why foreign goods flood this continent.
Many companies can keep prices low because of more efficient distribution networks.
Increased productivity per worker creates manufacturing savings.
An enormous company, such as Walmart, buys in such huge quantities that it can dictate prices. I'm sure manufacturers have to squeeze every penny in order to guarantee a seat at the retailers' table.