Do you agree with my analysis, that in they last 100 year, the dollar has lost about 99% of it value and with an average annual devaluation of 4.8%?

[Kelley1]

In 1925 the median hourly wage was 30 cents. In 2023 the median hourly wage is $28.00. In 1925, in California, the minimum wage was 16 cents. As of January 1, 2025, California's minimum wage is $16.50 per hour.

In 1925, the price of gold per ounce was fixed at $20.67. As of today, March 14, 2025, the spot price for one ounce of gold is around $2,985.50.

In 1925, on a farm in Arkansas, a pail of milk (more than a gallon) was 10 cents. Now organic milk is about 100 times that price.

[exitseven]

It seems it, especially after the last 4 years.

[exitseven]

Thanks for the MHO😎

[jamesgoldman]

Correct, gold and silver are real money

[abc3643]

Yes, the dollar has lost some of its buying power, but not 99%.

What you need to think about are both the inflation over time, but also changes in income over time.
If the rates of change are the same, then the buying power hasn't really changed.
Another factor to think about is culture - specifically, how people allocate their money; saving versus spending. If you save, then you aren't spending which means that you are not buying goods and services and that lowers demand for those goods and services which then lowers the prices of those goods and services. 100 years ago, we didn't have oceans of shit to purchase and people saved more because they were more mature in their relationship with money and economic times. Now, people are wasting money faster than a terminally-ill, drunken, Democratic sailor which is a major reason why young people whine, bitch, and moan about inflation which was actually much worse 40+ years ago.

Anyway, US News does a pretty good analysis of their own explaining in simple terms how the buying power of the dollar is significantly lower than it was in 1925... but it's not 99%.

How Much Household Staples Cost in 1925 vs. 2025
Step back in time to 1925 and compare the cost of living from then to today.

By Jessica Walrack
Jan. 31, 2025, at 1:46 p. m.

https://money.usnews.com/money/personal-finance/saving-and-budgeting/articles/how-much-household-staples-cost-in-1925-vs-2025

[Kelley1]

I would disregard the USNews article. First they give average income of people filing tax returns, which was only a small percent of the people. The median income in 1925 was less than $1,000 or $1,236 according to one source. Second, they use the Government's CPI inflation index, and you should know or should know how much the government lies about the inflation rate; always changing the methods to lower the inflation rates.

[abc3643]

OK, continue to drink the Kool-Aid.

[Kelley1]

I don't drink Kook-Aid, rarely soft drinks, or sweetened iced tea because I don't need the sugar. Therefore, I will not follow your suggestion.

[Shiprex]

So minimum return from labour is 100 or so times what it was in real terms price wise gold is 150 times so it's a better investment for those WITH it. median wages increased by a factor of 95 times and yet the country got better off? This tells you the system is rigged against people working. It' undervalues peoples work so the ones with capital to own stuff can profit more than the people actually doing work.

[Shiprex]

Simply it's the way capitalist imposition devalues people and adds value to resources

[Kelley1]

The purchasing value of gold fluctuates, but not a great deal, staying within the range of half to double.

[Shiprex]

Labour is still intentionally lagged behind by the ruling classes who, if you showed the top 10% income would show a far greater wealth gain rate. That's why the GINI coefficient shows that wealth inequality is accelerated by capitalist ideology.

[Syntosi]

... I am confused. This is exactly how a modern economy is supposed to look like. You see those peeks on the left where it goes up sharply? Those are ECONOMIC DISASTERS like Black Thursday. When that line goes up people and the nation suffers.

[RedInnocent69]

In principle, yes. Although, no capitalist system can exist without inflation.

[Kelley1]

The USA is not capitalism. When the USA was capitalist, there was no inflation. In fact, prices went down.

[Avicenna]

Only the gold price is useful of the three you have mentioned above. 1925 was before the New Deal era.

[Surely]

This just proves that the more wages increase. The prices of commodities go up with it.

[masterSir]

Yes it started when we stopped backing it with gold and silver.