The value of money is not static.it may ebb and flow against other currencies on the market.In the long term,a currency tends to loose value over time through inflation and as more money is created.
Inflation is a result of too much money chasing too few goods- and it is often influenced by government policies, obliging central bank and other factors. In the following short timeline of monetary history in the 20th century, this infographic looks at major events, the change in money supply and what a dollar could buy each decade.
A Short Timeline of U.S. Monetary History
1900s
U.S. Money Supply: $7 billion
What $1 Could Buy: A pair of patent leather shoes.
1910s
U.S. Money Supply: $13 billion
What $1 Could Buy: A woman’s house dress.
1920s
U.S. Money Supply: $35 billion
What $1 Could Buy: Five pounds of sugar.
1930s
U.S. Money Supply: $46 billion
What $1 Could Buy: 16 cans of Campbell’s Soup
1940s
U.S. Money Supply: $55 billion
What $1 Could Buy: 20 bottles of Coca-Cola
1950s
U.S. Money Supply: $151 billion
What $1 Could Buy: One Mr. Potato Head
1960s
U.S. Money Supply: $211 billion
What $1 Could Buy: Two movie tickets.
1970s
Over the decade, the dollar loses 1/3 of its value.
U.S. Money Supply: $401 billion
What $1 Could Buy: Three Morton TV dinners.
1980s
U.S. Money Supply: $1,560 billion
What $1 Could Buy: One bottle of Heinz Ketchup.
1990s
U.S. Money Supply: $3,277 billion
What $1 Could Buy: One gallon of milk.
2000s
U.S. Money Supply: $4,917 billion
What $1 Could Buy: One Wendy’s hamburger.
2010-
Purchases were halted in October 2014 after accumulating $4.5 trillion in assets.
U.S. Money Supply: $13,291 billion
What $1 Could Buy: One song from iTunes. (wow this is known as destruction in the value of money)
The Changing Value of a Dollar
At the turn of the 20th century, the money supply was just $7 billion. Today there are literally 1,900X more dollars in existence.
While economic growth has meant we all make many more dollars today, it is still phenomenal to think that during past moments in the 20th century, a dollar could buy a pair of leather shoes or a women’s house dress.