USD Purchasing Power in Real Time Since 2000
onedollar.today
USD Purchasing Power in Real Time Since 2000
1–10 of 80 posts
Re: USD Purchasing Power in Real Time Since 2000
#2You know what, it's not as bad as I was thinking.
Re: USD Purchasing Power in Real Time Since 2000
#3You know what, it's not as bad as I was thinking.
For me it's the opposite. I am a bit surprised that inflation halved buying power since 2000.
In my mind those level of interest usually come from the stock market or house appreciation, but I guess those are much faster (I seem to recall doubling every 8 years in the stock market and housing being a bit slower).
Re: USD Purchasing Power in Real Time Since 2000
#4You know what, it's not as bad as I was thinking.
For me it's the opposite. I am a bit surprised that inflation halved buying power since 2000. In my mind those level of interest usually come from the stock market or house appreciation, but I guess those are much faster (I seem to recall doubling every 8 years in the stock market and housing being a bit slower).
It would be useful if you explain how you calculate it. I mean, if you just apply a decaying exponential function, anyone can do that on their calculator.
Re: USD Purchasing Power in Real Time Since 2000
#5As much as the notion of "Purchasing Power" is economic, thus perhaps having a greater chance of being related to reality, I've been wondering if - and how - could these long-term measures account for greater diversity and "scale" of "things money can buy".
Nowadays if you're properly rich you can buy a seat on a sub-orbital flight. This wasn't an option in '00, no matter how rich you were.
On the other end of the scale, for basic things a (really) good quality loaf of bread will always be cheaper in Poland than say up north from Oslo, Norway; whereas a USA-designed made-in-China laptop pretty much never did scale with the rest of the "CPI basket"...
Point being: we sure do have numbers - what they really mean in practice is vague at best.
Re: USD Purchasing Power in Real Time Since 2000
#6What is the calculation? And how can you calculate it 10 decimal points?
Re: USD Purchasing Power in Real Time Since 2000
#7You know what, it's not as bad as I was thinking.
For me it's the opposite. I am a bit surprised that inflation halved buying power since 2000. In my mind those level of interest usually come from the stock market or house appreciation, but I guess those are much faster (I seem to recall doubling every 8 years in the stock market and housing being a bit slower).
I think the more interesting thing to chew on is how this will look over the next 25 years. The numbers will be... huge. 75k salary in 2000 is similar to 150k salary in 2026, project that out to 2050...
Something feels like it'll give out, but I've felt that way for 8 years at this point and I haven't been correct.
DCA and pray I suppose.
edit: a word
Re: USD Purchasing Power in Real Time Since 2000
#8As much as the notion of "Purchasing Power" is economic, thus perhaps having a greater chance of being related to reality, I've been wondering if - and how - could these long-term measures account for greater diversity and "scale" of "things money can buy". Nowadays if you're properly rich you can buy a seat on a sub-orbital flight. This wasn't an option in '00, no matter how rich you were. On the other end of the sc…
The best example I heard recently was anesthesia. Costs less than $5 to make. Worth a lot more if you have surgery coming up.
Re: USD Purchasing Power in Real Time Since 2000
#9This isn't very surprising. Typical US economic policy aims for 2-3% annual inflation. That counter shows an average 2.6% inflation across 26 years, which is kind of right in the range we'd expect.
It's debatable whether this is good longterm policy - but it's been the norm in the US for decades.
Re: USD Purchasing Power in Real Time Since 2000
#10You know what, it's not as bad as I was thinking.
For me it's the opposite. I am a bit surprised that inflation halved buying power since 2000. In my mind those level of interest usually come from the stock market or house appreciation, but I guess those are much faster (I seem to recall doubling every 8 years in the stock market and housing being a bit slower).
Rule of 72. For costs to double in 26 years, that means inflation was about 2.7-2.8%, which is pretty much where it’s supposed to be.