Sunday, September 11, 2011
Inflation calculators are a nice way to get a real feel for the effects of inflation that looking at a graph with percentages just doesn't give you. This one from the Bureau of Labor Statistics lets you see how much the cash under your mattress is worth today vs the date you originally put it under there. For instance, if you put $1,000in a safe in 2000, you would need $1,311.97 today to have the same buying power that the $1,000 had. Put another way 311.97/$1,000=31.20% loss in purchasing power. Thats a pretty significant change for 11 years. Remember in 1980 when you were wearing your parachute pants and Ray-Ban sunglasses. If you put $1,000 into a safe back then you would need $2,741.77 today to have the same purchasing power. Food for thought.