Money is purchasing power. Most things that cost $50 in 1990 dont cost $50 anymore.They cost more. Therefore, if you put that $50 you earned in 1990 under a mattress and then took it out today, it would buy a lot less than it did in 1990. Yet, it’s still $50. Price inflation does not have to be preceded nor followed by wage inflation. This has been proven many times. The fact that you earned $50 in 1990 and it took you the same amount of effort to earn $50 today means that you have in actuality made less in purchasing power. Which is all money really is.
