This idea can be expressed also by looking at Gold vs Oil (two widely traded assets).
1968 - Gold was $35/oz, Oil was $3.18/barrel. Therefore 1oz of gold would buy you 11 barrels of oil
2024 - Gold is $2400/oz, Oil is $80/barrel. Therefore 1oz of gold would buy you 30 barrels of oil
That "gain" of 20 barrels in purchasing power largely came from computers/ new tech / etc. That is to say, in a rational (non-inflationary) world, its enough to just save.
(I know that Gold is very imperfect as a measure of inflation, and the above calcs are not purely accurate, however they are correct enough as an example)
This idea can be expressed also by looking at Gold vs Oil (two widely traded assets).
1968 - Gold was $35/oz, Oil was $3.18/barrel. Therefore 1oz of gold would buy you 11 barrels of oil
2024 - Gold is $2400/oz, Oil is $80/barrel. Therefore 1oz of gold would buy you 30 barrels of oil
That "gain" of 20 barrels in purchasing power largely came from computers/ new tech / etc. That is to say, in a rational (non-inflationary) world, its enough to just save.
(I know that Gold is very imperfect as a measure of inflation, and the above calcs are not purely accurate, however they are correct enough as an example)