In 1910   the cost of a Construction ProjectA skyscraper, a bridge, a submarine, a church, a highway, canal, moon launch ... or the loss in a Historic EventA flood, a riot, war, earthquake ... of $17000   is $14,785,507.14 today as measured by its relative share of GDP The GDP is the market value of all goods and services produced in a year. Comparing an expenditure using this measure tells you how much money in the comparable year would be the same percent of all output. .

For discussion, this number is defined as Economy Cost.

Economy Cost of a project is measured as the cost of the project as a percent of the output of the economy. This measure indicates the opportunity cost in terms of the total output of the economy. It can be interpreted as the importance of the item to society as a whole. This measure uses the share of GDP.

An alternative way to look at this project or event is that it has a relative cost of $4,052,032.83 today as measured by GDP per capita The GDP per capita is an index of the economy's average output per person and is closely correlated with the average income. It can be useful in comparing different incomes over time.

For discussion, this number is defined as Relative Cost.

Relative Cost of a project is measured as a multiple of the resources used in its production. This would include the labor, capital and materials used to produce the project. This measure uses GDP per capita.

PAST CONSTRUCTION PROJECTS IN TODAY'S TERMS

The Erie Canal was built between 1817 and 1825 for a price of $7 million. This waterway is regarded as one of the most important investments in the 19th century as it opened up the Midwest to trade and migration. How does its cost compare to what its cost would be today? The Relative Cost in today’s dollars is $6.8 billion and the Economy Cost in today’s dollars is close to $204 billion. As a comparison the current budget of the U.S. Department of transportation is $70 billion.


PAST HISTORIC EVENTS IN TODAY'S TERMS

The Erie Canal was built between 1817 and 1825 for a price of $7 million. This waterway is regarded as one of the most important investments in the 19th century as it opened up the Midwest to trade and migration. How does its cost compare to what its cost would be today? The Relative Cost in today’s dollars is $6.8 billion and the Economy Cost in today’s dollars is close to $204 billion. As a comparison the current budget of the U.S. Department of transportation is $70 billion.


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