I read the article, and like almost all of the similar articles I've read over the years, it fails to take into account the extreme depreciation of the US dollar (and most other currencies) vs. the Swiss Franc over the last 40+ years.

Back in the early 1970's, it took about 4 francs to buy US$1. Today it takes $1.08 to buy a single Swiss franc. This factor of a little over four has to be multiplied by the general inflation rate (that affects both currencies equally) of 5. Therefore, a Swiss watch that sold for US$200 then should bring about 20 times that amount today, or approximately $4,000.

If you look at the list price of the Omega Moonwatch (which is pretty much made the same way then and now), that's pretty close to the reality. IMO, any analysis of "Then vs. Now" prices of watches without taking this hidden depreciation factor into account is faulty.

Swiss factories still have to pay their employees in francs now as they did then. It's just that the franc is far more expensive now, particularly if you are a US citizen.

The blame for this is mostly on politicians that decided long ago to inflate our currency by having uncontrolled government spending and financing this spree by simply running the printing presses. Switzerland chose not to go down this economic path and the currency markets price the franc accordingly.

There are good things and bad things that come from these disparate economic policies. That's a debate for another day.
gatorcpa

 

Similarly, when you look at the average UK wage compared to watch prices in the 60's and 70's the ratio is about the same today.