What is the real monetary Value of One(1*) U.S. Dollar $ in America Today? Your Thoughts?

Question

What is one(1*) Dollars actual worth Today, could it be 25cents in real Buying Power? Your Thoughts?

Answer 1

By 1933 the dollar was valued at .25 dollar compared with 1776 dollar. 7.5 dollars today will replace the buying power of a 1955 dollar. My dad bought gas at 19 cents per gallon in like 1961-I remember that. So, what is the dollar worth? well 680 will get you an OZ of gold. gold has been here before. Do we base the value of GAS? How about homes as the price is falling-deflation. Tech is in a constant deflation - my computer I paid $2000 for in 2000 is worth $200. Cars are growing down more deflation.

Answer 2

A dollar is the numerare, the unit of accounting. We use dollars to compare the value of other goods. If I have a dollar I can buy any good priced in dollars or I can buy another currency.

The value of a US dollar depends on the market I am participating in (place and time matter). If a move to a different market, my dollar has slightly different value. The value of the dollar depends on the market in which you are using that dollar. A dollar will buy you much less dinner in NYC than it would in San Salvador, just as a dollar would by less now than it would have 50 years ago.

The "real buying power" depends on the definition you are using. You can create an index of different market values or use some economy as a base for evaluation. This however is all relative and will get you no closer to creating an "absolute" value for anything.

In short:
1)Dollar is a unit of account.
2)Dollar's value depends on the market.
3)Values are all relative (they can only be pinned down in comparison to something else).

Answer 3

The value of the dollar is any one thing at the Dollar store. Any snack off the value menu at Wendy's. <1/3 a gallon of gas. 1/1200 of my mortgage payment.