Is it true that houses used to cost $4,500?

Why does inflation exist? Is it a friend to government, or a foe?Is it true that houses used to cost $4,500?
My parents bought their home in California in 1942 for $1200... When they retired in 1980 they shold it for $850,000. Inflation exists for many reasons most of which revolve around the laws of supply and demand as well as the theories involving ';the time value of money'; a dollar today is worth more then a dollor tomorrow because of interest. Inflation is a double edged sword for governement because it deals directly with economical issues. The value of the us dollar as compared to other contries currency is very important. If the value of the dollar drops to much other countries such as Japan and China will stop buying US bonds. Bonds are part of the way that the goverment receives money. So if inflation is good the value of our dollar goes up and other countries and people buy us savings bonds... if it is bad then people sell off the US savings bonds and the economy slows and growth declines in the market, people here become angry and if nothing is done we revolt and start again... thats also how we became a country...Is it true that houses used to cost $4,500?
They sure did. My parents bought a house in Texas in the 60's for $6,000! I was like ';wow';! In California, it's so hard to buy anything!
yes they did when annual salaries were $2000


why does inflation exist - because the people running our pension funds try to make more money each year with the same capital.. it is not sustainable in the very long term...