The collapse of the dollar

Discussion in 'Politics' started by 1776-1976, Jul 2, 2009.

  1. 1776-1976

    1776-1976 New Member

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    :banghead:Seeing how it seems I have more time than money these days I decided to do some research on the net about our impending economic collapse. While researching I came upon some interesting figures concerning inflation. I found out that it would cost $21.18 in 2008 to buy as much as $1 would buy in 1913. I found out that it would take $32,162.58 in 2008 to buy as much as the $10,000. my parents spent on our first house after moving to Texas in 1978. I found out that it would take $4036.57 in 2008 to buy as much as I could have got with $2000. in 1984. The reason for that figure is because I was makeing about $2000. a month in 1984 and I am still makeing around $2000. a month today but my money is worth less than half what it was in 1984. I found out that it takes $2000. in 2008 to be worth the same as the following amounts for the listed years: 1913 $94.42, 1920 $190.75, 1925 $166.91, 1930 $159.28, 1935 $130.66, 1940 $133.52, 1945 $171.67, 1950 $229.85, 1955 $255.60, 1960 $282.31, 1965 $300.43, 1970 $370.05, 1975 $513.11, 1980 $785.88, 1985 $1026.23, 1990 $1246.54, 1995 $1453.51, 2000 $1642.35, and 2005 $1862.66. If you notice it seems as if our dollar really starts to devalue fast in the late 1980's. Looking at this just how much longer will it be before there is nothing left but the very rich and the dirt poor? I then went on find out everyone would have to have a annual cost of living raise of over 20% every year just to keep up with inflation. All these figures are based on 1913 to 2008 and I will promise you it will be MUCH worse before the next election. Looking at this it is easy to see why people seem to have such a hard time keeping up. Years ago I used to hear that one day there will be no middle class but only the rich and poor. Granted not all the damage was done by our current administration but you can bet your #%@ they will bring us to the brink of disaster faster than you ever dreamed possible.
     


  2. DCortez

    DCortez TGT Addict

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    I'm very concerned about taxes, inflation, and higher interest rates with Obama in office.
     
  3. JKTex

    JKTex Well-Known

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    Excuse my skepticism but that's kinda stupid, in a funny light-hearted kinda way. :happy0001:

    You got that from an email or something, you didn't research anything, unless you started and didn't complete it.

    Let's see, 1913 the average annual salary was what? In 2008 it was what? $10k house in 1978 compared to today? Do the same math. And what you made in 1984 is compared to the same thing today? 25 years doing the same thing, same pay? If so, that has nothing to do with the value of the dollar, it has to do with the value you provide.

    Besides the fact that you can't compare most of today with the past as there's very limited apples to apples to compare.

    I'm not saying there isn't signs in recent history of money value decline, but in history there is also the opposite.
     
  4. JKTex

    JKTex Well-Known

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    Now that's easy to agree with. :patriot:
     
  5. 1776-1976

    1776-1976 New Member

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    Figures are based on the annual Consumer Price Indices (CPI) from 1913 to 2008 wich are published by the U.S. Bureau of Labor Statistics. The 2008 CPI is assumed to be an average of October, November, and December 2007 CPI values. The 2008 CPI will be updated as 2008 CPI values are released. So the ONLY figure that may not be accurate is the 2008 CPI but it should still be pretty close. Maybe you should do a little more research yourself.
     
  6. Texas1911

    Texas1911 TGT Addict

    May 29, 2017
    Austin, TX
    Inflation rates are actually quite low compared to other times in the US's history. As JKTex said, there is some degree of upward movement as valuation dictates. Generally the goods value themselves at a higher rate than the consumer (labor) based on market conditions.

    I think one thing you'll also want to think about is how many things the average consumer "needs" in the 2000s compared to the 1920s. In the 1920s the average joe did not have a TV, cell phone, 1 car per person, 1500+ sq. ft. house, so on and so forth.
     
  7. DCortez

    DCortez TGT Addict

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    Jimmy Carter
     
  8. 1776-1976

    1776-1976 New Member

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    While they may not have needed the same things as we need today food, housing, medical, and whatever it took to heat the home, cook the food ect... were still needed then just as now. As you can see I listed several years all the way up to 2008 and we have had ovens, televisions, telephones, record players, automobiles ect... for a long time before 2008. You can check it out for youself they have a calculator were you can get the figures for every year at http://buyupside.com/calculators/purchasepowerjan08.htm If anything haveing so much more in modern times would only devalue the dollar even more than this states. Do the math yourself and you will see that you would have to have over a 20% cost of living raise every year just to keep up with inflation. I never stated what the salaries were for 1913 and all I did is show how much purchasing power the dollar had at given years compared to 2008. As far as stateing my monthly salary has been almost unchanged today from what it was in 1984 is because I was just out of high school in 1984 and makeing about the same today (working a different job) wich only shows how slow wages rise compared to the cost of living.
     
  9. Texas1911

    Texas1911 TGT Addict

    May 29, 2017
    Austin, TX
    It's incorrect to say you'd need a 20% increase in salary to match inflation, because inflation itself has been considerably less than that every year.

    Purchasing power is defined also by the valuation of goods. If a good is more valuable today, then it does not necessarily devalue the dollar because of that.
     
  10. 1776-1976

    1776-1976 New Member

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    What goods today are of better qaulity today than before? The most basic of automobiles all the way into the mid to late 1960's were of much higher qaulity than even the top of the line automobiles of today. The furniture was made from real wood not out of the partical board and plastic todays furniture is made from. A stereo or television came in a nice wood cabinet unlike the plastic and partical board todays intertainment systems come in. Ive seen houses biult 100 years ago with wood that is in better shape than houses biult just 20 years ago so the houses were better made also. The firearms were also way better biult than firearms of today. Gas was much more potent and had a higher octane rateing than even the supreme grade gasoline has today, food was fresher since it was not filled with preservatives and shipped from another country, Soft drink tasted better and came in a glass bottle and tasted much better. This list could go on and on. The fact is that goods are of far lower qaulity today than they used to be so we have not advanced in improveing products but rather figured out ways to make them cheaper and faster at the expense of the consumer.
     

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