Sunday, June 13, 2010

Value of the Dollar Over Time, and Stocks

From 1900, $100 turns into these in 2009:
$2,640.00 using the Consumer Price Index
$2,260.00 using the GDP deflator
$12,200.00 using the unskilled wage
$19,100.00 using the Production Worker Compensation
$17,200.00 using the nominal GDP per capita
$69,300.00 using the relative share of GDP. This means the value of the dollar has gone way down. In all the stories from grandparents, they say a gallon of milk cost a dime (close to anyway). Their parents would give them a quarter a month for allowance (again, not exact). Also: $1.00 in 1914 had the same buying power as $21.59 in 2010.
Annual inflation over this period was 3.25%.

Dow: +38.54, 10,211.07, +0.38%
Nasdaq: +24.89, 2,243.60, +1.12%
S&P 500: +4.76, 1,091.60, +0.44%

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