Demise of the Dollar: The Truth Behind Price Increases

We hear it when we’re kids: “You need to learn the value of a dollar”. But what exactly is the value of a dollar? Did they ever teach you this in school? Did you ever learn on your own?

One way of looking at the value of the dollar is by comparing it to other currencies:

Number of Euros Needed to Purchase $1 Over 5 Years

Number of Canadian Dollars Needed to Purchase $1 Over 5 Years

Another method is to compare it to gold, which remains relatively stable in value over time.

Number of US Dollars Needed to Buy 1 Ounce of Gold Over 8 Years

If your dollar is becoming worth less and less over time, why do you think the prices are going up over time? Why do you think gas prices are over $4 per gallon? Why do you think food prices are up?

What I want to know is why the White House Press Secretary, Dana Perino, would be fired for talking about the value of the dollar:

Maybe it’s time we all try to heed our elders and learn something about the value of the dollar before it’s “not worth a Continental”.

~ by skepsis on July 20, 2008.