The Buying Power of the U.S. Dollar Is Shrinking

Your incredibly shrinking dollar. The purchasing power of your dollar has dropped 94% since inception.

In other words, prices are going up. That’s not good news for people who buy stuff.

Remember, a lot of people think that inflation is what happens to prices. It’s not. Inflation is what happens to money. That’s where the word comes from. Inflate means to expand and prices don’t expand. Prices go up, prices go down. What expands? The money supply. It expands during inflation, it contracts during deflation. A result of an expansion of the money supply inflation is that prices tend to rise.