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
$1 million back then would remain $1 million today but the difference is the purchasing power back then would have been wayyy more. The equivalent to $13 million in 1920 according to [ this calculator](https://www.usinflationcalculator.com/). Basically you could have bought way more for your money back then. It’s all down to inflation. There’s no limit in the amount of USD notes that can be printed so they [devalue in purchasing power over time](https://howmuch.net/articles/rise-and-fall-dollar).
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