The chart above was derived from Bureau of Labor Statistics data. As you can see, it takes about $22 today to buy what $1 bought in 1913. Note the correlation between this chart and the growth of government debt as a percentage of GDP in the post below.
As government debt rises, purchasing power of our currency falls. In short, government is engaging in the ancient habit of debasing the future value of the currency to finance today’s spending.
If your retirement is in Swiss Franks, or Chinese Renimbi you may not be concerned. But most of us should be worried as our savings, pensions, and social security are denominated in Dollars.
Perhaps pictures are worth pages of words and argument
