Inflation, is the simple answer. But what causes this? Why couldn’t society just keep on keeping on with prices? Examples, a $0.25 for a candy bar, $0.75 for a fast food burger, $30k for a home etc. It worked then, so why not now, why not just agree to lower the prices of everything?
In: Economics
The dollar had more value because people had less dollars to spend. In other words; we’ve gotten wealthier and can afford to buy more things. More people, with more money, means we’re competing with each other for the same resources.
You didn’t ask this but there’s a subtext of pessimism to the question. “Why are things more expensive?” Things aren’t more expensive and, for the majority, they’re better off being born today than in the 80s. Compared to the amount of money you make, the wealth you have now, and your potential wealth everything I can think of is cheaper and better today.
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