If the dollar was only worth a dime in the 1980's how much less is it worth today?

Question

in the last several years our government has printed enough money to cause inflation equal to 30 or 40 %, so a dollar is only worth 5 cents? how much worse is it going to get? will it ever get better? or will our wonderful nation get rid of money altogether?

Answer 1

Your understanding of the valuation of money needs some help.

Assuming your figures are correct, the 1980 dollar is what would be worth only 10 cents today, but I think that is an inflated estimate. It would probably be worth 60-70 cents.

But you must understand also that supply and demand drive prices down. Calculators were introduced in the late 1960's, would only do the 4 main functions, and cost $1000. Now, for less than $2, you can get one that does more and does it faster. So in the market, money becomes more valuable as supplies increase. And as the supplies of manufactured goods increases, the means of producing them cheaper and better increases.