Hans Kasper, MS-CPA, PS

Inflation / Deflation Chart Since 1800
 

From 1800 to 1940, a dollar was a dollar, but sometimes it was worth $2.00 in purchasing power.  During most of that time, the country was under a deflationary pressure.  During periods of war, 1860-1870, 1910-1920 and 1940-1950, there was inflation of 48%, 92% and 72% in those decades.

However, after 1945, a dollar was never a dollar again.  A dollar in 1940 is the same as ten dollars in 2000, or $1,000 equals $10,000, or a dollar in 1940 only has ten cents of purchasing power in 2000.

Isn't it interesting that inflation has risen with the Federal Reserve Bank's designed increase in consumer debt.

 

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