$1 in 1870=4 cents now \ stacker news ~econ

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341 sats \ 15 comments \ @grayruby 3 Dec econ

Really cool chart showing the dollar’s purchasing power over a 150 plus year span.

Really depends on how you calculate these things....there are 3 mains ways: (a) official/semi-official inflation data, (b) silver, (c) gold.

I think silver is actually the best, because up until 1965 it was in nearly all the coins. Since it was in actual circulation (unlike just a 'gold backing') therefore its scarcity effects could be assumed to have impacted prices.

$1 coin(s) = .85 oz/silver Therefore 4 cents = .034 oz /silver Current silver price is $58/oz, therefore 4 cents = $1.97

109 sats \ 2 replies \ @Undisciplined 3 Dec

The problem with silver is that it’s value is primarily industrial rather than monetary and there are a bunch of uses for silver in technology that didn’t exist back then.

173 sats \ 1 reply \ @freetx 3 Dec

The problem with silver is that it’s value is primarily industrial rather than monetary and there are a bunch of uses for silver

Maybe, but it has risen far less than gold since 1971. Up until 71' by decree the ratio was 1/35 - now the ratio (in prices) is 1/72.

Silvers 'industrial demand' has been far offset by its demonetization .... it seems that its biggest use was "coinage" before and that far outweighed its current industrial demand.

50 sats \ 0 replies \ @Undisciplined 3 Dec

It’s fair to note the offsetting factors but being subject to such fundamental changes in demand makes it suspect as a steady measure of value.

Gold has basically just been valued as a store of value the whole time and it actually helps that it wasn’t heavily used in exchange because that didn’t change radically.

31 sats \ 0 replies \ @grayruby OP 3 Dec

You're right. If you are going to compare it to gold and silver the decline in purchasing power will definitely be even worse.

40 sats \ 3 replies \ @BlokchainB 3 Dec

I hate these charts. It was a different world between now and then.

52 sats \ 2 replies \ @grayruby OP 3 Dec

Different world but don't change the fact that people are getting poorer holding dollars.

40 sats \ 1 reply \ @BlokchainB 3 Dec

But people live leaps and bounds better today than in 1870 and it’s not even close

58 sats \ 0 replies \ @grayruby OP 3 Dec

That is most certainly true.

50 sats \ 3 replies \ @Wumbo 3 Dec

Posted image encase other Stackers having trouble seeing image.

0 sats \ 1 reply \ @Wulby78 3 Dec

thanks. Why can't I see the image in the post? It just says "show full tweet" and is just loading.

0 sats \ 0 replies \ @grayruby OP 3 Dec

That's odd. Not sure.

0 sats \ 0 replies \ @grayruby OP 3 Dec

Thanks.

40 sats \ 0 replies \ @0xbitcoiner 3 Dec

The 7-Stage Cycle: How Every Reserve Currency Collapses (Dollar = Stage 5) #1279186

1693 sats \ 0 replies \ @nitter 3 Dec

https://xcancel.com/greenbackd/status/1996287158647472349