Don't Ignore Inflation

November 14th, 2013
inflation, money
Inflation used to vary dramatically, but since the 80s it's been relatively stable in the range of 1-5% per year:

I often think that because inflation is around 2% these days I don't need to pay much attention to it. If a number is from 1970 I'll go look up the conversion to adjust for inflation but if someone compares 2003 numbers to 2013 I figure it's not that important. If you just assume all relatively recent monetary values you see are in current dollars, how far wrong will you go? It turns out this can matter a lot: dollars lost a quarter of their value from 2003 to 2013. So here's a chart of the inaccuracy of this assumption when considering numbers from the past 30 years:

When trying to work with numbers that are even a few years old, run them through an inflation calculator first.

Comment via: google plus, facebook

Recent posts on blogs I like:

How Does Fiction Affect Reality?

Social norms

via Thing of Things April 19, 2024

Clarendon Postmortem

I posted a postmortem of a community I worked to help build, Clarendon, in Cambridge MA, over at Supernuclear.

via Home March 19, 2024

How web bloat impacts users with slow devices

In 2017, we looked at how web bloat affects users with slow connections. Even in the U.S., many users didn't have broadband speeds, making much of the web difficult to use. It's still the case that many users don't have broadband speeds, both …

via Posts on March 16, 2024

more     (via openring)