Odd Lots This Is What Happened to the Price of Nails Over the Last 330 Years
Feb 7, 2022
Dan Sichel, an economics professor at Wellesley College, sheds light on the evolution of nail prices over 330 years. He discusses how nails serve as a window into broader economic changes, linking their price history to innovation and manufacturing efficiencies. The conversation reveals the impact of shipping costs on construction delays and the transformational role of nail guns in the industry. Sichel also highlights current challenges in the home building supply chain, including unexpected nail shortages that threaten construction projects.
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Nails as Economic Indicators
- Nails are a unique product for economic study because their form has remained consistent for centuries while production methods have drastically changed.
- This allows for analysis of manufacturing evolution and economic shifts.
Nail Production Efficiency
- Nail production efficiency has dramatically increased, with one worker now potentially overseeing the creation of 3,500 nails per minute.
- In 1695, a blacksmith could only make one nail per minute.
Constructing the Nail Price Index
- Dan Sichel constructed a nail price index using historical records like school and hospital logbooks, newspaper ads, and other sources.
- Early nail prices came from Greenwich Hospital's logbook in the UK.