How many is the dollar worth now, and how much it was worth in the past. Evolution of purchasing power
What has been the evolution of the purchasing power of the dollar, the Western reference currency, from 1900 to now? Thanks to Visual Capitalist we can present you an infographic that clearly shows the trend in value over more than a century:
In 1913, the Federal Reserve Act granted Federal Reserve banks the ability to manage the money supply in order to ensure economic stability. Back then, a dollar could buy 30 bars of chocolate.
As more dollars came into circulation, the average prices of goods and services increased while the purchasing power of the dollar decreased. In 1929, the value of the consumer price index (CPI) was 73% higher than in 1913, but one dollar was now only enough for 10 rolls of toilet paper. Here is a table of what you could buy for a dollar over time
In 1944, you bought 20 bottles of coca-cola for one dollar. In 1971, however, 17 oranges. In 1997 you bought 4 grapefruits. Today you only buy a coffee from MacDonald, in the USA.
More and more paper, less and less value, but in the meantime it is all digital. There is even no paper anymore.
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The article How many is the dollar worth now, and how much it was worth in the past. Evolution of purchasing power comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/quanti-vale-il-dollaro-ora-e-quanto-valeva-in-passato-evoluzione-del-potere-dacquisto/ on Sun, 11 Apr 2021 12:00:55 +0000.