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Money Math
Do the Money Math, Inflation from Mark Twain's 1869 to 2007
CureZone Math
Date: 1/30/2008 11:28:55 PM ( 16 y ) ... viewed 1413 times Friday, June 29, 2007
Inflation since 1869
How can I learn what $40,000.00 in 1869 would be worth today (2007)?
... for a school project.
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posted from CPRR Discussion Group at 5:55 AM
9 Comments:
CPRR Discussion Group said...
From: "Bob Pecotich" bobpec@earthlink.net
As a rule of thumb, start with a "times ten" multiplier. So, $40,000.00 in 1869 would be $400,000.00 today. Perhaps someone elso has a more precise figure.
—Bob Pecotich
6/29/2007 1:36 PM
CPRR Discussion Group said...
It would depend whether the $40,000 was to be paid in gold coin or in currency.
$40,000 paid in gold coin in 1869 would be about $1,255,000.00 today.
$40,000 paid in currency in 1869 would be about $941,300.00 today.
Here is how to calculate this:
Let's assume payment in gold coin.
The gold content of a U.S. $20 Liberty Coin, minted 1849-1907 is 0.9675 troy oz.
So $40,000/$20 = 2,000 gold coins.
2,000 coins x 0.9675 oz/coin = 1935 oz gold
Today's gold price is $648.75/troy oz.
So 1935 oz x $648.75/oz = approximately $1,255,000.00
Let's instead assume that payment was in currency and that the 1869 price of a Central Pacific Railroad ticket can be used to determine the 1869 currency debasement correction.
The 1869 first class through fare from San Francisco to New York was $112.50 coin or $150.00 currency.
$1,255,000.00 x ($112.50/$150.00) = approximately $941,300.00
The main lesson of this is that the U.S. governmment cannot be trusted to issue honest money. It has broken its promises and as a result has destroyed the dollar which is no longer backed by gold or anything else. As a result, so far the dollar which continues to lose its value at about 3%/year, has already lost 97% of its value.
6/29/2007 2:01 PM
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