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
The money doesn’t increase in value over time. It decreases in value; in your example where $100k in the past is the equivalent to $1M today it’s because the money decreased in value. It means you’d have to have $1M in today’s money to equal the value of $100k in the past. e.g. if you were to go to the grocery store and bout $100k worth of groceries in 1900 you’d need $1M in today’s money to buy the same amount of goods.
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