Post
Topic
Board Economics
Re: An interesting case of a widespread misconception
by
Febo
on 24/06/2020, 09:05:24 UTC
A lot of posters on the forum love to come up with figures showing how much the dollar (the American dollar, obviously) has depreciated over time, like 1 dollar in 1913 was worth 1000 dollars today (or whatever), with the general idea being that "the grass was greener and the light brighter back in the day"

However, what these forum members forget to account for is the rise in wages during the same time span. And the irony is that wages in the US have been outperforming inflation since WWII, barring a few rather short periods. It basically means that people become wealthier over years despite a declining dollar

So much for dollar inflation

People are earning more even with inflation but today there are way more needs that were 100 years ago.

It dont really matter that people are earning more. Money is losing value. People that dont earn anything and have stored money lost. There is no need for that.