Inflation--what's happened to our dollar.

[1hole]

Fed aims at 2% inflation every year! That is their goal. Compound that over 50 yrs and see what you get. Plus many items are NOT in the 'inflation' calculations.
Inflation/deflation are the same, you just get less for more. Look at the price to earning ration of stocks.

Nothing is free. Political "Liberal" politicians easily play head games with gullible and low information voters. Politicians, most of them anyway, are fully aware that, like water seeking to be level, the iron relationship between cost and income will always maintain about the same balance.

Gullible people who can't think passed their wallet really like the idea of government forcing hourly incomes up because it seems to make the world a better place "for the little guy". All it really does is move the numbers for a moment. Things soon find their new balance but with little no real impact in the end.

I mean, if a socialist command economy works why be so cheep about a "minimum wage", why not make it $35 an hour and do "poor" people some real good? Well, the right answer is because it would end up with a Big Mac, fry and Coke for lunch costing about $45! With unearned government mandating higher hourly rates, those folk who live in poverty will effectively still be just as poor as they are now but with a lot more Monopoly dollars in their pockets!

Inflation; a new rifle and the number of hours to obtain it are still about the same as they were in 1965 but my rabid Democrat and union buddies only chortle about how much more they "make" today; yeah, they get more Monopoly money but there's little difference in what all that money gets them and that's all that really matters!

[Scrounge]

302 engine did not exist in 1965; lots of inaccurate info has become 'gospel' if repeated often enough...

The 2021 Mustang Fastback GT does, however, have a a 302 according to their website. Mom's 1965 probably had a 289. Essentially the same engine block as the 302.

Besides I was speaking from my memories as a 10yo kid. That was over 50 years ago. Not claiming it as gospel.

Bill

[snowwolfe]

Ya'all can keep cars from the 60's. I'll gladly pay for all the air bags, antilock brakes, corrosion resistant panels, clear coated paint, blind spot monitoring, vastly improved stereos, 5000-10000 oil changes, better fuel economy, more power, crew cab pickups, and I could go on and on. Its pretty easy to get 300,000 miles out of a modern vehicle. In the 60's you were lucky to break 100K without rebuilding the engine

[GOPHER SLAYER]

It IS relative. I bought my first house - just barely - in 1993. My ex- still has that house and I'm still paying for it, but the last one I bought was two months ago at double the price of the first one and I was able to put a LOT more down this time.
It's about improving your own circumstances, which is still possible.

I get what you are saying. Let's all just quit complaining, improve our circumstance and get rich. Geez, why didn't I think of that. Once again, it is not relative.

[popper]

Fed meeting notes are about to come out. More of the same BS, lots of demand (for cheap $) and dwindling supply? Basically, they don't know how to solve the financial problems, won't change and keep promoting what makes them look good. Fed reserve was started to avoid short term crashes in $ supply now tries to control the county's economy, not their job and they don't know how. They just provide profit for the market anymore. Same with FTC and big board controls.

[beshears]

Wife found a pay book for a past relative from 1776 from the American Army. He was paid $1 per month and on discharge received $3, three months pay.

[Fishman]

Inflation is an unfortunate reality, but improving your circumstances is something you have to decide to do, and there is a bit of luck, fortune, or God's blessing as well, depending on what you believe.

I started with nothing but an old pickup, a small family. Grew up in a house with no air conditioning or tv's and wood heat. That nothing I had was offset with a good work ethic and a reasonable amount of smarts as well as a wife who had the same. Fast forward 30 some-odd years and my wife is driving one of those new Mustang GT's mentioned and my 3 year old platinum truck is paid for, just like my home and property. Those that claim it is not possible for them are right, you have to believe in yourself before anyone else does. I hope this doesn't sound like I am bragging, although I am pleased that I have been blessed with such good fortune. For me the key is/was taking responsibility for my own happiness and working on the things I could change while praying about the rest.

Oh, and for the first 20 years, not much changed and it would have been easy to lose hope, but the last 10 years have proved that this approach works.

[beechbum444]

Inflation, power of the dollar and all that stuff…. At the end of WW2 all the axis powers hand a place at the table that decided the worth of money , this is the reason that the American dollar is worth what the us says it’s worth… the others countries that didn’t have a seat at that table are on a quicker decent to economical disaster than the axis powers post WW2…. Examples of these can be found in the Republic of the Congo’s , etc. They were not at the table when the power to develop , print and control money was divided up… All counties are on a controlled decent in economic oblivion, but only a few control the brakes, be thankful we ( the us) are a Major controller of the brakes , otherwise …. 50,000 ( insert monetary name here ) would not buy a loaf of bread .. the misconception that most are under , including myself until a while ago , is that the American dollar will one day be worth nothing, it will never be worth nothing , it’s just that the perception of other nations money is 1) on a quicker decent/ deterioration rate than ours and 2) they have no place at the table to control it….our dollar is worth whatever the folks control say it’s worth ….

[beechbum444]

P.S. we gave it a name “ inflation “ , it’s just another boogie man ….

[hoodat]

Here is my defense against inflation.

As soon as you start earning money in this world, immediately take 10% and give it to the Lord. THEN, take another 10%, and pay it to yourself. DO NOT SPEND THIS MONEY FOR ANYTHING, except safe and secure long term investments that will grow over the years.

You might notice, even if you're a doofus in math, that this leaves you with 80% of your money to piss away however you want. While you are young, enjoy this stupidity, and even find ways to earn more to have fun with. But PLEASE, learn to spend only that 80% of your earnings. If you can't do this, you will more than likely doom yourself to a life of poverty and indebtedness. You will train yourself to spend more than you earn, and once you do that, you will NEVER be responsible with your money or give any to the Lord.

While you are having a ball pissing away 80% of your earnings, keep your eyes open for a spouse that you would like to spend your life with. Don't rush this, or become pregnant with the wrong girl. Choose wisely and carefully, and get married. After you have done this, --- STAY MARRIED.

If you start your life with these simple rules, and keep on the rails, you will prosper and be happy and secure. You will also have trouble and setbacks, but the Lord and your 10% will stay with you and keep you secure.

If this sounds boring and not fun, just compare it to working till you're 80 out of necessity, and never having any extra cash to buy your prescriptions with. or never owning a home, or a boat, or actually owning your car. Giving all your extra money to your "wrong choice wife" and whatever kids she birthed that you won't ever really know.

I won't go on and on about this, but believe me, I speak from experience, either personal or witnessed in my life. jd

[GregLaROCHE]

I in-listed just when the US military just after we went off the gold standard. I was paid $288 per month. As I progressed in pay grade, It a got a little bit more for this and that, but prices kept going up too. We were lucky to have the base commissary and of course the inexpensive enlisted men’s club for our alcohol needs.

Today everyone needs to be aware of the big time inflation that’s getting ready to come, because of the Covid dilemma. That’s the only way the government will be able to pay for it.

If you have a lot off cash in the bank or under your mattress, it’s going to have a lot less value in the future. Think about home/life improvements and put your nest egg where interest rates will constantly increases with inflation. It’s probably a good time to buy a firearm that will appreciate. Don’t buy into a CD, unless the interest rate is really favorable and your not locked in for too long.

[farmbif]

ok, I'm not an economist, never went to business school or anything like that, but did have my own successful business, I had to keep prices in line with competition or lower to be competetive and keep customers coming in and leaving satisfied. I didn't cut corners but kept overhead as low as possible. that's the extent of my expertise with that said.
current inflation that I see right now seems most extreme in beef prices and lumber prices.
if the ranchers that raise the cattle are not getting any more money than they were 2 years ago before retail prices skyrocketed where is all that additional money going. its either to the meat packers, there are own 4 or 5 companies that control 90+% of that in our country and then there are the distributors of which I have no idea how many there are that control that 90+% of the market and then there are the grocery stores/retailers. Same with lumber. the loggers are not making any more than they were 5 years ago, the ones I know in this area anyway. They are not rich people, they have to work every day to keep the bills paid to have a place to live, keep the lights on and keep a vehicle on the road. The price of a 2x4 is 3x what it was 5 years ago. where is all the money going. it isn't going to guys at the saw mill or the people that load your truck at home depot.
so who is getting all that difference in what these products cost?
Say you have a decent job and make lets say $40/hr. Are you rich? when you have to pay these inflated prices on stuff it doesn't make you richer it makes you poorer. does it or does it not?>

[sureYnot]

Spot on, Greg.

Sent from my SM-A526U using Tapatalk

[gbrown]

Using automobiles as a comparison for calculating inflation isn't hardly possible I think. Even the base model cars of today make the cars of the sixties more akin to horse and buggies than a modern vehicle.

Whether you like it or not, the new ones are crammed so full of space age technology and luxuries that the old ones didn't have, that the cost's simply can't be compared. And don't forget that most of todays cars will easily clock 300,000 miles, with minimal care and maintenance. Compare that to the "good old days" when you started looking for a new car, or at least a new motor at 100,000 miles.

I miss the old "Plain Jane" models of my youth and early adult life though, and wish they still made something utilitarian like that, but with modern tech that works so well these days. jd

I agree whole heartedly. That is also why you cannot do any type of mathematical comparison, such as value to value. Between the technology you mention, the safety equipment, and fuel mileage constraints added to the mix, there is no way to compare the 1960's car and today's.

[Nobade]

My standard of value used to be the Colt SAA. In 1873 until they quit making them, they cost an average working man a month's wages. Now you can get an Italian made one for a week's work or less, or a real one for two month's work. Everything is messed up now!

[bedbugbilly]

What happened to our dollar?

Answer is pretty simple - look no further than the new White House Assisted Living Center - and all of the resident's caretakers in the New Democrat Socialist Communist Party.

There is one simple rule that every businessman oe businesswoman needs to know to survive in business and grow . . . . YOU CANNOT SPEND MORE MONEY THAT THE CASH FLOE YOU HAVE COMING IN.

Unfortunately, politicians have never learned test lesson . . . .

[JSnover]

I get what you are saying. Let's all just quit complaining, improve our circumstance and get rich. Geez, why didn't I think of that. Once again, it is not relative.

Your first house cost $18,000 in 1963. What was the market value of that house in 1993?
Your wages in in 1963: Assuming that job still existed and you were working it, how much did your wages increase by 1993?
Here we are, not far from 2023 and if your income and circumstances are the same now as they were almost 60 years ago, you have my deepest sympathy because if you earned $9,000 per year back then and $9,000 per year in 2020, you are well below the poverty line.
On the other hand, $9,000/year in 1963 - adjusted for inflation because it's all relative - equals just over $79,000 in 2021. So if all you did was keep up with inflation you did ok. And even if you stuck to the US median household income you would have brought home $68,400 last year.

[sparky45]

Here is my defense against inflation.

As soon as you start earning money in this world, immediately take 10% and give it to the Lord. THEN, take another 10%, and pay it to yourself. DO NOT SPEND THIS MONEY FOR ANYTHING, except safe and secure long term investments that will grow over the years.

You might notice, even if you're a doofus in math, that this leaves you with 80% of your money to piss away however you want. While you are young, enjoy this stupidity, and even find ways to earn more to have fun with. But PLEASE, learn to spend only that 80% of your earnings. If you can't do this, you will more than likely doom yourself to a life of poverty and indebtedness. You will train yourself to spend more than you earn, and once you do that, you will NEVER be responsible with your money or give any to the Lord.

While you are having a ball pissing away 80% of your earnings, keep your eyes open for a spouse that you would like to spend your life with. Don't rush this, or become pregnant with the wrong girl. Choose wisely and carefully, and get married. After you have done this, --- STAY MARRIED.

If you start your life with these simple rules, and keep on the rails, you will prosper and be happy and secure. You will also have trouble and setbacks, but the Lord and your 10% will stay with you and keep you secure.

If this sounds boring and not fun, just compare it to working till you're 80 out of necessity, and never having any extra cash to buy your prescriptions with. or never owning a home, or a boat, or actually owning your car. Giving all your extra money to your "wrong choice wife" and whatever kids she birthed that you won't ever really know.

I won't go on and on about this, but believe me, I speak from experience, either personal or witnessed in my life. jd

You seem to have forgotten that TAXES take a Lions share of the 80% you describe as " this leaves you with 80% of your money to piss away however you want."
That 80% really is just around 25~30% in reality.

[1hole]

the rich can't get richer without making the rest of us poorer

Actually, that's a common belief that isn't true.

[downzero]

the rich can't get richer without making the rest of us poorer

But actually that statement is demonstrably false for all of history. It even has a name--the "fixed pie fallacy"--and the fact that you even repeat that statement shows the failings of our education system. The rich get much richer and the poor get a little richer. The rate at which those happen, people may not like, but your statement could not be more false.


For the rest of you, I used to tell my students that if you could come up with a new and better way to measure inflation, every university in the world would give you a Ph.D for it. Even in my class of 30+ students, as long as each of them went to a different graduate school, they could probably do it. The point of that statement is that inflation is difficult to measure, as each measure of inflation leaves behind some useful information, just like a map projection.

One that the government uses is called Consumer Price Index, which while imperfect, captures a lot of the goods and services we regularly buy. You can use this calculator to track the value of the dollar over time using the CPI:

https://www.bls.gov/data/inflation_calculator.htm

The real problem from my perspective isn't inflation, but rather, that about 80% of the work force hasn't had any meaningful real (that is, taking inflation into account) income growth in the last 40 years. My generation is the first to be worse off than our parents by any metric (delaying marriage/childbirth, unable to qualify for home mortgages, no meaningful savings, etc., are common). I don't have an explanation for why that is, as it's complicated. But we've got to figure out a way for some part of the increase in productivity to go to working class people, as the United States has among the most productive labor force per hour worked of all countries, and we work a LOT of hours. We can figure out a way to have more to show for it. We do have to figure out a way for our labor markets to become more competitive though--so that firms compete for workers just like workers compete with each other for jobs. If there's 300 qualified applicants for every job, we'll never see any growth in wages and salaries.