The collapse of the dollar

[1776-1976]

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.

 

[DCortez]

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

 

[JKTex]

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

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.

 

[JKTex]

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

Now that's easy to agree with. atriot:

 

[1776-1976]

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.

 

[Texas1911]

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.

 

[DCortez]

Inflation rates are actually quite low compared to other times in the US's history.

Jimmy Carter

 

[1776-1976]

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 [url]http://buyupside.com/calculators/purchasepowerjan08.htm[/URL] 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.

 

[Texas1911]

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.

 

[1776-1976]

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.

 

[1776-1976]

Maybe Im off on the average annual inflation rate but you can figure it out for yourself if you disagree. Still the dollar is worth 21.18 times more in 1913 than 2008 so what percentage would that be? As far a value of goods you will find very few average products from earlier times that are not made as well or better than the most expensive brands of comparable product today.

 

[Texas1911]

Still the dollar is worth 21.18 times more in 1913 than 2008 so what percentage would that be?

Average income was $1296.00 / Year in 1913. The average income of a person in 2009 is ~$35000.00 / Year. So the average income in the United States is 27 times higher than it was in 1913. If the cost of goods has increased 21.18 times, then there is a net gain by the consumer.

It's all in ratios. True "inflation" comes when items value based on market demand in relation to a growing disparity in worker value. Ie. the 1930s and late 1970s / Early 1980s.

 

[Texas1911]

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.

That merely reflects your opinion, not the actual market. The actual market says otherwise.

Not saying your opinion is wrong, just that the entity of value is measured differently by other people.

 

[JKTex]

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.

I'll be a little less gentle.

Oh my god........that right there supports what I thought was coming. Proof, that nothing logical will come from any attempt at discussion or debate or even an argument. You can't do any of those 3 with illogical crazy talk.

 

[oldguy]

Quote( The fact is that goods are of far lower quality today than they used to be so we have not advanced in improving products but rather figured out ways to make them cheaper and faster at the expense of the consumer.)quote





1776-1976, your correct in all you state however it is difficult to prove especially when most simply do not want to believe the consumer is basically being raped in terms of quality & cost, homes in my area in the 150,000 range are 7 year homes(my term) at that point they must be repaired, numerous products are similar, but we have become a throwaway society.

My children all highly educated need to work twice as many hours to purchased same thing I had in the 60's for less then 1/2 the money, again you are correct quality of life for the American worker is on the decline two areas we have made progress is in medical treatment and electronics for communication.

In time most of those who disagree will see the light on this subject because times are going to get much worse before it gets better.

 

[1776-1976]

Thanks for the support oldguy. I do not feel the need to argue my case anymore and for the others who refuse to see what is going on around us they can follow their leader obama strait to he#*.

 

[M. Sage]

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.

One might think this, but one would be completely wrong. The modern auto is higher in quality in every way I can think of; it's more reliable, lasts longer, is safer, is more efficient, has higher performance, has more standard items previously considered "luxury" items (like a radio, power steering, power breaks, etc.) and is better to drive than in any point in history.

Growing up in the rust belt, I can tell you that previous to around the mid-90s, it was unheard of for a car to go more than 5 years without rusting unless it simply wasn't ever driven during the winter. Now we have coated steel (or aluminum or plastic) for body panels which almost never will rust out.

 

[viking]

I talked to an old buddy that owns a small gun shop, that is his part-time investment. Anyway he uses credit cards to buy his inventory. Not anymore. He said he was notified by 2 of them that interest rates were going up to 29 percent! He said he got a second loan on his house to pay them off and then cut them up.

 

[usmcpmi]

Just a couple of things... I would rather have an "old" truck built in the '60's rather than this new junk comming out of Detroit today... if we could get "REAL" gasoline, not this crap we have to buy now. I don't know about anyone else, but I still make about the same as I did in 1989. I'm sure the price of everything else has gone through the roof. Anyone else here paid any taxes lately?? Do you think you are getting your moneys worth? I guess some people live in their own little world and refuse to see the regular people out here have been turned into slaves for the gov't agenda. MG

 

[MadMo44Mag]

I work and pay tax's so those that do not wish to work, can stay home and reap the benefits I have worked for and will never see.
I bought the house I grew up in my folks paid 10k for in 1962 - it cost me in 2005 51k - same house very few improvements over the years.
To me this shows the value of the dollar has greatly declined.
Same house - different value attached to the dollar!