Article #88-2 | Gutenberg Articles

Excerpt

Excerpt from Price/Cost Indexes from 1875 to 1989; Estimated to 2010, by Michael Hart

Back in those days extra floppy drives from Apple or IBM for
around $325 to $475 respectively [and don't forget that many
of these floppies were single sided and held around 150K but
we only tend to remember the double sided floppies. If your
memory includes "flippies" you know what I mean. (Flippies:
single sided floppy disks which were notched so you could do
a "flip-over" with the floppy, and use the other side, which
was supposed to be unusable but which in most cases was just
as good as the side you actually paid for. Don't forget the
floppy disks started at $10 each, with dollars that were the
equivalent of $2 in 1993 dollars: so, each time you punched
a notch and turned one over, you basically gained $20 in the
money we use today. You then also needed only half as much,
in terms of physical shelf space, to store as much data. It
might stagger the present day mind to actually think of that
monstrous storage problem we had when we wanted to store any
huge books, such as the Bible, on single sided floppies.

The two points I want to make here are that for the cheapest
of these machine prices back then, you can now get a machine
that is 100 times faster with 100 times the disk space: and
that the same is true for the most expensive AND that prices
today are actually half what they appear to be in comparison
to the prices listed above.

So, when you spend $3,000 on computer gear today, you are in
fact only spending half as much as was spent back in '79 for
the Konan drive. . .you are really only spending $1,500 from
1979. . .due to changes in the value of the dollar as per an
assortment of Consumer Price Index figures [none of which is
in agreement with any of the others, so you are encouraged a
bit to look up additional information on the subject. These
figures [below] are presented only to provide a continuum to
make comparisons. Actually these figures are a conservative
estimate [as most government figures seem to be [example, no
double digit inflation for any year since 1947, which was an
extremely good year, by the way.]

Explanation

This excerpt from Price/Cost Indexes from 1875 to 1989; Estimated to 2010 by Michael Hart (founder of Project Gutenberg and a key figure in early digital publishing) is a nostalgic yet analytical reflection on the economic and technological shifts in computing from the late 1970s to the early 2000s. The passage blends personal anecdote, economic commentary, and technological history to highlight how rapidly computing power became more affordable and powerful over time. Below is a detailed breakdown of the text’s content, themes, literary devices, and significance, with a focus on the excerpt itself.

1. Context of the Source

Author & Background: Michael Hart (1947–2011) was a pioneer in digitizing public-domain texts (via Project Gutenberg). His work often intersected with early computing, data storage, and the economics of technology.
Purpose of the Text: This appears to be part of a larger discussion on historical price indexes, comparing the real cost of technology across decades. Hart uses computing hardware (floppy drives, disks) as a case study to illustrate inflation, technological progress, and purchasing power.
Audience: Likely tech enthusiasts, economists, or historians of computing—readers who would appreciate both the technical details (e.g., "flippies") and the economic implications of price changes.

2. Summary of the Excerpt

Hart contrasts the high costs and limitations of early computing (late 1970s–1980s) with the vastly superior and cheaper technology of his time (early 2000s). Key points:

Floppy Drives & Disks:
- Early floppy drives (from Apple/IBM) cost $325–$475 (equivalent to ~$1,000–$1,500 today).
- Floppy disks themselves cost $10 each (~$20 in 1993 dollars).
- Many were single-sided (150KB storage), though users could modify them ("flippies") to double capacity by flipping them over—a DIY hack to save money and space.
- Storing large texts (e.g., the Bible) required dozens of floppies, a "monstrous" logistical problem.
Technological Progress:
- A $3,000 modern computer (early 2000s) was 100x faster with 100x more storage than a $3,000 1979 computer.
- Even the most expensive 1979 systems were outclassed by cheap modern ones.
Inflation & Purchasing Power:
- Due to inflation and dollar devaluation, $3,000 in the early 2000s was equivalent to only $1,500 in 1979 dollars.
- Government CPI (Consumer Price Index) figures were unreliable (e.g., no recorded double-digit inflation post-1947, which Hart skepticizes).

3. Themes

A. Technological Obsolescence & Progress

Hart emphasizes how rapidly computing improved:
- Storage: From 150KB floppies to gigabytes in decades.
- Speed: 100x performance gains for the same (or lower) real cost.
The physical burden of early storage (e.g., shelves of floppies for one book) contrasts with modern digital abundance.

B. Economic Perception vs. Reality

Nominal vs. Real Costs: A $3,000 computer in 2000 was cheaper in real terms than a 1979 model.
Inflation Skepticism: Hart questions official CPI data, suggesting it underreports inflation (e.g., no double-digit inflation post-1947, which he finds dubious).

C. Nostalgia & Ingenuity

The DIY culture of early computing ("flippies") reflects a time when users hacked hardware to maximize value.
There’s a wry humor in recalling the absurdity of storing the Bible on dozens of floppies—something unimaginable today.

D. Distrust of Institutional Data

Hart’s parenthetical asides (e.g., "none of which is in agreement with any of the others") reveal skepticism toward government economic reporting.
This aligns with his libertarian-leaning views (Project Gutenberg was founded on principles of free access to information).

4. Literary Devices & Stylistic Choices

A. Conversational Tone & Parentheticals

Hart writes informally, as if speaking to a peer:
- "and don’t forget that..."
- "If your memory includes 'flippies' you know what I mean."
Parentheticals add humor and personal voice:
- "(Flippies: single sided floppy disks which were notched so you could do a 'flip-over'...)"
- "(example, no double digit inflation for any year since 1947, which was an extremely good year, by the way.)"

B. Hyperbole & Exaggeration

"monstrous storage problem" – Emphasizes the absurdity of early limitations.
"stagger the present day mind" – Highlights how unrelatable old tech is to modern users.

C. Juxtaposition

Then vs. Now:
- 1979: $3,000 buys a slow, low-storage computer.
- 2000s: $3,000 buys a 100x better machine for half the real cost.
Official Data vs. Reality:
- Government CPI claims no high inflation since 1947, but Hart implies this is misleading.

D. Allusion & Assumed Knowledge

"Konan drive" – Likely a typo or obscure reference (possibly meant "Corvus Drive", a early hard disk system).
"Flippies" – A niche term for modified floppies, assuming the reader is familiar with retro computing.

5. Significance of the Excerpt

A. Historical Perspective on Tech Economics

Hart quantifies how Moore’s Law (exponential growth in computing power) outpaced inflation.
His adjustments for purchasing power show that tech became not just better, but radically more affordable.

B. Critique of Economic Measurement

His distrust of CPI data reflects a broader skepticism of government statistics, a theme in libertarian and tech circles.
This foreshadows modern debates about how inflation is calculated (e.g., shadowstats.com).

C. Cultural Memory of Early Computing

The passage preserves the "folk knowledge" of early PC users (e.g., flippies, storage hacks).
It serves as a time capsule for how scarcity shaped behavior (e.g., reusing floppies, physical storage constraints).

D. Relevance to Digital Preservation

As the founder of Project Gutenberg, Hart was deeply concerned with data storage and accessibility.
His frustration with early limitations (e.g., storing the Bible on floppies) motivated his work in digitizing texts.

6. Key Takeaways from the Text Itself

Technology improves exponentially, but economic metrics often lag in capturing real value.
Early computing was physically cumbersome—users had to hack and adapt to limitations.
Government data may understate inflation, especially in fast-changing sectors like tech.
Nostalgia isn’t just about sentimentality—it’s about remembering how constraints shaped innovation.

Final Thoughts

This excerpt is more than just a price comparison—it’s a microhistory of computing culture, blending personal experience, economic analysis, and technological nostalgia. Hart’s conversational yet data-driven style makes the past feel both distant and strangely relatable, especially to those who lived through the transition from floppies to cloud storage. His skepticism of official narratives (whether about inflation or tech progress) also makes the text relevant to modern debates about economic measurement and technological change.

Would you like a deeper dive into any specific aspect (e.g., the "flippies" hack, Hart’s economic views, or the Konan/Corvus drive reference)?

Questions

Question 1

The passage’s discussion of "flippies" serves primarily to:

A. illustrate the technical ingenuity of early computer users in overcoming hardware limitations.
B. highlight the economic desperation of consumers facing exorbitant storage costs.
C. provide a nostalgic anecdote that underscores the physicality of early digital storage.
D. expose the arbitrary nature of technological constraints imposed by manufacturers.
E. demonstrate how user-driven modifications could disrupt corporate pricing models.

Question 2

Hart’s parenthetical remark—"none of which is in agreement with any of the others"—is most effectively interpreted as:

A. a dismissive critique of the inherent subjectivity in economic data collection.
B. an offhand observation that undermines his own reliance on CPI figures.
C. a subtle indictment of institutional opacity in financial reporting.
D. a call for readers to conduct independent research to verify his claims.
E. an attempt to preemptively deflect criticism of his conservative estimates.

Question 3

The passage’s comparison of a $3,000 modern computer to a 1979 system is structured to emphasize:

A. the inevitability of technological progress in capitalist economies.
B. the diminishing returns of computational power beyond a certain threshold.
C. the role of inflation in distorting perceptions of affordability.
D. the underappreciated labor of engineers in driving cost reductions.
E. the non-linear relationship between price, performance, and time.

Question 4

Hart’s assertion that "you are really only spending $1,500 from 1979" is most fundamentally a claim about:

A. the eroding value of fiat currency over decades.
B. the relative accessibility of computing power across generations.
C. the failure of wages to keep pace with productivity gains.
D. the subjective nature of economic value in technological goods.
E. the hidden subsidies embedded in modern hardware pricing.

Question 5

The passage’s tone is best described as:

A. wistful yet didactic, blending personal reminiscence with pedagogical intent.
B. cynical and combative, challenging both corporate and governmental narratives.
C. detached and analytical, prioritizing empirical data over emotional appeal.
D. triumphalist, celebrating unchecked progress without critical reflection.
E. conversational but subversive, using humor to undermine conventional wisdom.

Solutions and Explanations

1) Correct answer: D

Why D is most correct: The "flippies" anecdote reveals that the manufacturer-imposed single-sided limitation was arbitrary—users could exploit the same physical media for double the capacity with minimal effort. This exposes how constraints were artificial (likely to sell more disks) rather than technical. The focus isn’t on ingenuity (A) or nostalgia (C) but on the imposed nature of the limitation.