• Death_Equity@lemmy.world
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    6 months ago

    The dollar has lost ~17% of its value in the past 4 years and ~95% of its value since 1924, so par for the course of the orange man wants to keep going.

    • gila@lemm.ee
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      6 months ago

      This is wrong. By looking at a single datapoint of total printed dollars, you’re measuring USD’s value relative to older USD only. This would only make sense if the value for things you would trade USD for are static. Relative to other reserve currencies, assets, goods, services, USD is significantly more valuable today than it was 4 years ago. Not to mention the proportion of printed dollars no longer circulating.

    • aubeynarf@lemmynsfw.com
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      6 months ago

      If you held US stocks instead of dollars in that time, you would have returned 114,629% , beating inflation (dollar devaluation) by about 7.5% per year.

      Part of the point of a deflationary fiscal policy is to increase the velocity of money and get it working for economic growth and innovation, versus being stuffed in a mattress for 100 years.

      • shortwavesurfer@monero.town
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        6 months ago

        Even with a slightly deflationary currency, people still need to pay their mortgage, electricity bill, buy groceries, etc. So it’s not like money won’t move at all. Because something tells me that people don’t want to sleep in boxes and would like to be able to eat.

        • 800XL@lemmy.world
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          6 months ago

          They don’t invest it or spend it on things like luxuries though, and that’s how the health of an economy is measured.

    • shortwavesurfer@monero.town
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      6 months ago

      Exactly. Which is why people who want to maintain their wealth by homes and stocks and gold, etc. Because the dollar is purposely losing value. And that’s a dumb thing to save in. But most people do not understand this.

      • Death_Equity@lemmy.world
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        6 months ago

        $2,196, or $40,110 accounting for inflation. Today the Average American makes $59,384 or $3,251.24 in 1924. A house cost 3.6 times anual income($7,720), a house today costs 5.96-7 times anual income($354-179-417,700). The cost of food is 3202% higher in 2024 vs 1924.