Excuse the weird title, but I think a. Example should make it clearer, when people say: person A had money in 1900, say 100,000$, that is equal to 1,000,000$ in todays money?
How does that work?
Or what do they mean exactly?
Like if my Great grandfather had 1 million that remained untouched till this day shouldn’t that 1 million remain as a 1 million even today?
In: Economics
you have less buying power. so lets say u had 200 bucks in 1900 or so. back then there was less actual bills and coins to go around so 200 bucks would be worth more. if there was 1 billion bucks total, those 200 would be worth .0000002% of teh entire amount. then if there was now 1 trillion bucks to go around those same 200 bucks would only be worth 1/1000th of what they were a century ago, so .0000000002%. dis is called inflation. if more money is printed, wutever u have would be worth slightly less and if you got some milk for 30 cents back then, itd cost 30 bucks today, again because thered be more bills and coins.
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