Post
Topic
Board Economics
Re: The savings problem
by
tyz
on 25/01/2024, 21:03:56 UTC
I agree that Purchasing Power is getting worse each generation, based on this site Inflation Calculator, 1$ dollar in 1900 is now equal to $0.03. It's crazy to see how much our dollar getting worse each generation and there are no real solutions for this, in my opinion, what we can do is we should not waste on anything like food, gases, technology, electricity, water, etc. Many young people these days love to waste many things and we should change this habit from our kids so the next generation should value for what they have.

Bad example. If you put this $1 on your savings account in 1900 without interest, then of course it has only $0.03 in value today. But if you would have invested this $1 into the S&P 500 in 1900, it would be $113,000 today [1].

[1] Here is a calculator for this https://ofdollarsanddata.com/sp500-dca-calculator/