$100,000 After Five Years of 3% Inflation - One Page Punch

in #inflation8 years ago

It's wild that the U.S. dollar loses a minimum of 3% a year of its purchasing power due to inflation. So a $100,000 after five years looks like...

After year 1: 100,000 - 3% = 97,000
After year 2: 97,000 - 3% = 94,090
After year 3: 94,090 - 3% = 91,267
After year 4: 91,267 - 3% = 88,528
After year 5: 88,528 - 3% = 85,872

So after five years, you still may have $100,000 but the purchasing power of that original amount lowers to $85,128,
that's a loss of $14,128 in purchasing power due to inflation, money printing and the debt system...oh yeah, and ignorance.

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Yep and the government all say we need an inflation rate of 2-3% per year. Cheers

Yep, taxation through inflation, but most people see it as just prices going up.

Thanks for commenting!