DSE Consulting Inc.

The Shrinking $

How did you answer that question?

98.8% of people answered that they would take the $20.00 now

WHY?

Let's take a look at some history. Using the Consumer Price Index for a given calendar year. This data represents changes in prices of all goods and services purchased for consumption by urban households. This index value has been calculated every year since 1913. For the current year, the latest monthly index value is used. In 2001, for example, it took $17.89 to buy what $1 bought in 1913. Note that in 1920, it cost $2.02, and declined in 1925 and through the 1930s, illustrating the effect of the Great Depression, when prices slumped. Prices did not pass $2 again until 1950.

So, what does this tell us about the "Shrinking Dollar"?

Well let's take a look. The last 15 years you can see the dollar devalued in the neighborhood of 31%

Year	1913	1920	1925	1930	1935	1940	1945	1950	1955	1960	1965	1970	1975	1980	1985	1990	1995	2000	2001	2002	2003	2004	2005
Amount it took to equal $1 in 1913	$1.00	2.02	1.77	1.69	1.38	1.41	1.82	2.43	2.71	2.99	3.18	3.92	5.43	8.32	10.87	13.20	15.39	17.39	17.89	18.17	18.59	19.08	19.39

So that means that $100.00 today would be worth $69.00 in 15 years showing a loss of $31.00.

So if you selected the $20.00 right now, that was a prudent move on your part.

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