On a roll..... What is $100 really worth?
KUCH
Posts: 1,186
Just thinking? What was a hundred worth in the 30's and what is it worth today? Mathematics is not my forte, so let's assume $100 today is worth $50. Then what is $50 dollars worth today? Lets say $25 dollars. And then, what's $25 worth today, $15. You see where this is going? $100 today is worthless!
Stand and Deliver
Stand and Deliver
0
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You can do it the hard way
or, you can do it the easy way.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>Just thinking? What was a hundred worth in the 30's and what is it worth today? Mathematics is not my forte, so let's assume $100 today is worth $50. Then what is $50 dollars worth today? Lets say $25 dollars. And then, what's $25 worth today, $15. You see where this is going? $100 today is worthless!
Stand and Deliver >>
While in 1930 a gallon of gasoline cost only $0.20 and today it's about $3.90 (in my area), I don't think that tells the whole story. For instance, in 1930 if you wanted a calculator, all you could get was one of these:
And while I don't now what it cost then, I suspect $100 wouldn't cover it. By the early 1970s, you could get a Bomar Brain for a few hundred dollars (take a look at all those features +, -, *, and /):
Today, for less than $100, you can get a programmable graphing calculator:
Thus, IMO today's $100 may actually be worth a lot more than $100 in 1930.
Just kidding, but it's examples like these that Bernanke just loves to show the strength of the US dollar.
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
"I only golf on days that end in 'Y'" (DE59)
<< <i>In 1900, you could walk into a gun store and put down a double eagle as payment for the finest Colt revolver. Today you still can. >>
Sad, but true.....although, the finest Colt revolver of today is likely a better product.... Cheers, RickO
<< <i>Wow! 35% just since 2000...depressing, in more ways than one. >>
But there's no inflation
<< <i>
<< <i>Wow! 35% just since 2000...depressing, in more ways than one. >>
But there's no inflation >>
Are you going to believe the government or your lying eyes???
701.5. Based on these US Gov't numbers, the $100 of 1935 is now worth $5.87.
<< <i>The Federal Reserve publishes the answer. In 1935 the Consumer Price index was 41.2, in April 2013 it was
701.5. Based on these US Gov't numbers, the $100 of 1935 is now worth $5.87. >>
Consumer price index calculation methods used by the Bureau of Labor Statistics change over time. Incentives to give a true picture of CPI have also changed over time. 1935 CPI formulas and current CPI formulas are apples and oranges. Another consideration is that production methods and technology improvements over time have a production cost reduction effect that may or may not be passed on to the consumer, dependent on the amount of competion in a given market.
The most accurate method for measuring inflation is to determine the cost for a basic item in terms of labor time required to purchase the item. For example "what was the cost of a loaf of bread in minutes of labor then vs. now?"
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>
<< <i>The Federal Reserve publishes the answer. In 1935 the Consumer Price index was 41.2, in April 2013 it was
701.5. Based on these US Gov't numbers, the $100 of 1935 is now worth $5.87. >>
Consumer price index calculation methods used by the Bureau of Labor Statistics change over time. Incentives to give a true picture of CPI have also changed over time. 1935 CPI formulas and current CPI formulas are apples and oranges. Another consideration is that production methods and technology improvements over time have a production cost reduction effect that may or may not be passed on to the consumer, dependent on the amount of competion in a given market.
The most accurate method for measuring inflation is to determine the cost for a basic item in terms of labor time required to purchase the item. For example "what was the cost of a loaf of bread in minutes of labor then vs. now?" >>
My friend, The most accurate is what it costs me each week in order to maintain my standard of living.