There is a chart making the rounds lately
, that claims the dollar lost 96.2% of it value since 1900. One of Ron Paul’s fav talking points. Though technically true in a very narrow sense, if you look at average incomes during the same period, it is clear why this is deceptive. Additionally, the way the line chart is presented is highly deceptive. It makes it seem that there has been higher inflation in the last 40 years. But if you look at the actual numbers in the chart, that is clearly not the case. See the last 2 paragraphs for more detail.