Then vs. Now: What does $1 Buy You?

Keynesians and Austrian economists will disagree on many points on inflation. However, a conclusion which is universal is the great power of inflation over time.

While the measurement of CPI may be up to debate, the cold hard facts don’t lie. In 1960, one dollar bought an ounce of silver. Today, it buys closer to 1/20 of an ounce. If you go all the way back to 1810, one dollar bought 3 gallons of whiskey. In the bar today, it buys just 1.25 oz of Fireball, which isn’t exactly the high-end stuff.

You don’t have to go back very far to see the effects of inflation. Just in 1998, a gallon of gasoline was only $1. Now, all you have to do is look at the nearest pump.