So in 1909, the smallest purchasing power was equivalent to our Quarter today.
Another way to look at it might be to imagine you have a handful of change containing one cent, one nickel, one dime, one quarter, one Half Cent and one dollar coin in any particular decade. That totals $1.91.
In 1915 that would have bought what $45 buys today! 1925 = $26 1935 = $33 1945 = $25 1955 = $17 1965 = $14 1975 = $8.40 1985 = $4.20 1995 = $3 (rounded)
So that change in your pocket used to be worth something. You can see why paper money was not very important in the early part of the century.
I think this illustrates why an update of denominations is in order. Pennies, nickels and dimes are worth a fraction what a penny was only a couple generations ago.
And I was reading an article in NN tonight... just at the end of the war, the equivalent exchange for CSA paper to silver was $82/oz in current money. Convert that to gold and it was $1200/oz.
-----Burton
50+ year / Life / Emeritus ANA member (joined 12/1/1973)
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Quote: Just some interest facts to ponder about modern coin values:
Quote: I think this illustrates why an update of denominations is in order. Pennies, nickels and dimes are worth a fraction what a penny was only a couple generations ago.
A point that almost everyone fails to see. Thank you.
I vaguely remember one of the few days I stayed awake in class back in the seventies I believe was the seventh grade. My science teacher (or class) got on the topic of inflation.
She (teacher) tried to point out the current buying power of the dollar and cent of the day compared to years past.
One of the things she compared was the current cost (in the seventies) of a single head of lettuce to what it cost by the bushel(s) a hundred years prior.
By her calculations added that if the same rate of inflation continued that same head of lettuce would cost a thousand dollars within the next hundred years.
I asked former Mint Director Philip Diehl about this very topic. The reason I asked is to find out whether the government was actually thinking about future proofing it's money. If you love coins, his answer might startle you.
I like your graphic, Steve. I was just typing out my ramblings as I calculated them in Excel, but the picture is a nice visualization.
Might be fun to do one from 100 years ago. Penny = Quarter and Dollar = $20!
Inflation during the 1800s and early 1900s is interesting. According to CPI data, there was actually about 50% deflation between 1800 and 1900. So a dollar in 1800 bought what $13.50 does today, but a dollar in 1900 bought about what $28 does today. Inflation didn't catch up with 1800 again until 1930! (And then the depression happened)
That picture above from 1950 is actually fairly close to the initial buying power in George Washington's day. (10:1 vs 13.5:1). You could say that was very close to the intended purchasing power for those coins. Shifting everything over and losing a decimal point seems pretty straightforward and easily understood by the public.
Solution: Redenomination (by a factor of 100), followed by demonitization of everything that's worthless (post 1935 dollars, post 1964 quarters, dimes, halves, make 1965-1970 halves worth 12 cents, post 1981 cents as 1982 was 50/50, etc.).
First, you want to get money OUT of the country, and PREVENT its entry (possibly by penalty of death), then make it so that only physical cash can be converted to the new US dollar (bank runs would occur, possible collapse of the economy could occur), but it'd be worth it.
Put PM's back in the currency and have the government set a value for the metals. Make rampant inflation a thing of the past.
Otherwise, we're going to become like Zimbabwe with trillion dollar bills soon. Inflation will not end until it ends forcibly.
How do you figure that our 100 year 3.22% average annual inflation rate is rampant? I'm pretty sure Earth will crash into the sun before a 3.2% inflation rate turns $1 value into $1,000,000,000 through inflation. The highest average inflation of the past century occurred in the 1910s, while still on the silver and gold standard.
Now we see why New Zealand eliminated 1, 2 and 5 cent coins and now rounds to the nearest 10 cent increment. Just about everything price wise costs 10 times as much as 50 years ago.
Quote: How do you figure that our 100 year 3.22% average annual inflation rate is rampant?
You know they've redefined how inflation is calculated about 30 times in just as many years? Real inflation is around 20-30%. Plus, 18 trillion in debt...it won't end good. Inflation is just the beginning.
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Posted 01/23/2015 08:55 am
