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
They are adjusting the numbers to account for inflation… basically saying that somebody with $100k in 1900 would have similar buying power to somebody who had $1m today.
Of course if your great grandfather had $100k and put it into a savings account or invested it, he’d likely have WAY more than $1m today.
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