How much is a us dollar really worth?

Answer 1

That's not really a well-stated question. A dollar bill or coin is always worth a dollar at the moment, but over time inflation or deflation can change the purchasing power of the currencycalled the dollar.

For example, in the late 1960s a single dollar could buy much more of some things than today - gasoline was about 30 cents a gallon and first-class stamps were 4 or 5 cents. But on the other hand, wages were a lot less as well. A teacher might make $7,000 a year and a high-paid CEO might make $40,000. Plus there were no calculators, iPods, personal computers or many of the other things we take for granted.

What it comes down to is whether lives were richer or poorer in general, not based on particular prices. If a typical trip to the supermarket in 1968 cost $15 and today it costs $100, you can say that a dollar is worth 1/7 as much in purchasing power. However, if you were making $7,000 then and $50,000 now (for instance) that trip to Safeway or Kroger takes the same percentage of your salary. Are you then any poorer or richer?

Answer 2

Well it's part of the global economic system. Money itself doesn't have intrinsic value, everything is negotiated through a series of complex comparisons, inclusive of Natural Resources, political power, current economical situation, etc. There isn't a simple answer.