I don’t know why, but the concept of monetary inflation seems to elude most people’s thought process. Not a single day goes by when I don’t hear someone say “Well this was $100 brand new in 1960 and its $100 today, its value is the same!”
It’s like… UHG.
Alright, basic economics 101:
Generally speaking, money is worth less each year. $400 today is not “worth” the same as $400 10 years ago. It’s called inflation. Inflation causes many issues, especially in our current economy where wage increases are less than inflation.
I swear, I’ll scream the next time someone claims $100 today is the same as $100 30 years ago.
That’s all, now back to your regularly scheduled programming…
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