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Economy Factors In

September 21, 1997

In the article headlined "Low Budget Is Not Necessarily Best for Association" (Real Estate, Sept. 7), I think the following point is missing:

In a disinflationary era, there are lots of contracts and services obtained at lower cost without compromising quality.

Let's take a look at the following figures to illustrate my point of view.

In 1980, a barrel of oil cost $40.

A gallon of regular gas, $1.50.

A Big Mac, $1.99.

In 1997, a barrel of oil costs $19.

A gallon of gas, $1.50.

A Big Mac, 99 cents.

Does this mean that oil, gas and Big Macs are of deteriorating or inferior quality? No, it means disinflation with lower prices.

So, when the board member cited in the article as proudly saying that assessments have not increased in five years, he or she probably will be absolutely right in being proud.



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