Look, this may seem a bit difficult to grasp, but work on it. You’ll understand better than ever, so that you might realize it’s impact upon you, and get to actually doing something about it!
The VALUE of our Dollar is going DOWN; it buys less and less as time marches forward, thus PRICE (not the same thing as value) goes up. See government data on gasoline prices up to year 2005, in which it was felt necessary to include a 2nd column “in 2005 dollars”… this obviously an attempt to show that gasoline prices had not risen much at all, quietly ignoring the drop in value of the dollar. It is useful, tho’, that it shows that 1920 30-cent gasoline would cost $2.91 in the 2005 dollar. Actually gasoline dipped to as low as 17-cents during the trek to 30-cents in 1956. As of today, the price of $3.72 is up 62% this past year. I did a very quick and rough calculation and found that gasoline should be $6.56 today. That would indicate our dollar has a long way to fall to equilibrium!
This makes it SEEM as though prices for gasoline, and for virtually everything else, are rising, while actually the real VALUE of the dollar has fallen. This is not simply semantics — it is fact impacting our entire lifetimes.
The pre-Fed 1913 dollar is now worth only a nickel. This means it now costs 20 dollars to buy what cost only 1 dollar in 1913. Actually many prices actually dropped drastically over these years as the result of free enterprise, high technology and mass production. I remember buying my first computer in 1986 for $3,000. Now 22 years later I paid $579 for a hugely better and more capable computer. Plugging in for inflation, my new computer should have cost $5,709, which cannot even consider the vastly superior product.
Okay, enough information so that you should be getting a picture. All that knowledge is readily available today, but completely useless unless one applies it to one’s life and progress. Please comment on how this lifetime of inflation impacts you!