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1st part:

Want to understand how inflation impacts your purchasing power?

Let's look at The New Yorker, which publishes the price of each copy right on the front of the magazine.

1925: 15 cents

2024: $8.99

What the heck happened to make The New Yorker so much more expensive?

It's important to understand that technology is naturally DEFLATIONARY.

Everything should be getting cheaper over time, including The New Yorker.

Think about it: printing, writing, & editing technology has improved tremendously since 1925.

So, why is the magazine more expensive now?

From 1925 to 1971, The New Yorker increased in price from 15 cents to 50 cents, an increase of 233.33%.

That's pretty dramatic, but not THAT bad...

But from 1971 to 2024, price increased from 50 cents to $8.99, an increase of 1698%.

So, WTF happened in 1971?

In 1971, Richard Nixon "temporarily" suspended the convertibility of dollars to gold, ending the Gold Standard.

This meant that the Federal Reserve could now print dollars out of thin air without restriction.

Increasing the money supply by creating new money out of thin air is literally "inflation."

"Prices rising" is the result of inflation.

When more monetary units are created, the purchasing power of the monetary units that already exist decreases.

When the government/central bank prints money out of thin air, they are STEALING your purchasing power.

Here's The New Yorker over a few decades:

1971: $0.50

1980: $1.00

1990: $1.75

2000: $3.00

The magazine did not become more valuable, our MONEY became LESS valuable.