A Miracle of the Market

I just bought a 4 GB memory stick for $10. Buying it made me think of my first large storage purchase, a 10 MB drive for my Tandy 1000 that cost me $500. If I am calculating correctly, the cost of 1 MB of memory has dropped from $50 to 1/4 cent (and that's in a much more flexible form in the contemporary case). The price has dropped by a factor of 20,000.


  1. Anonymous8:40 AM

    Another interesting fall in prices is reflected in the $60-$80-ish prices of VHS in the 1980s and the current $18-ish price of DVDs now.

    Disregarding rise in quality, we still find prices to have fallen by more than 75%. Were there a numerical way of measuring video and sound quality (there might be), then who knows how much of a price fall we have seen with respect to the same level of quality.

  2. You are being unfair, the market is even better at lowering digital storage costs than you say. Calculate based on non-portable storage i.e hard disks. You'll find a 2TB drive costs you as little as $100

  3. That miracle came at the expense of the enslaved industrial worker.

  4. Good point, Avram -- that is why I noted the portability of my memory stick.


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