I saw this circulating around and thought it was an interesting read.

Some of these are horrendous, some are funny, and a few made me think “Hmm, maybe not a bad idea”

  • andMoonsValue@lemmy.world
    link
    fedilink
    arrow-up
    0
    ·
    2 months ago

    Not quite. The point I was trying to make was that wages/housing are not necessarily tied inflation i.e. the change in the overall effective value of a dollar. Let’s see if we can try to agree on a few points. The effective value of the dollar is not stagnant. It changes each year. The fed tries to ensure inflation rather than deflation to encourage investing/spending of money. As such, the rate at which more money is minted each year and federal rates are controlled to try to hit a healthy amount of inflation each year. Now, if we were to take the average percent of inflation each year between now and 1933, the value of today’s dollars would be roughly (today’s dollar value)=(1933’s dollar value)×[1 + (average inflation rate)]^(2024-1933).

    Do we agree on the above but just disagree on what the average inflation rate would be? Or is something above incorrect?

    • Dagwood222@lemm.ee
      link
      fedilink
      arrow-up
      0
      ·
      2 months ago

      The only difference is that I am focusing on the individual’s relationship with a dollar and you are taking the larger view.

      My one and only point is that if someone who had a million in 1933 came to the future and saw what $24 million would buy he’d be outraged.

      The official figures are fine if you’re talking statistics; they fail when you apply them to the real world.

      I think we can all agree on that point.