Quote:
|
Originally Posted by TSmith1969
Here's a handy inflation calculator, for those who want a simple across-the-board inflation adjustment. Just type in 1.00 and 2006 at the top and the year you want to convert to.
http://data.bls.gov/cgi-bin/cpicalc.pl |
I had five methods of calculating the value of money in the days of yore. CPI is one of them.
http://eh.net/hmit/compare/
# The CPI is most often used to make comparisons partly because it is the series with which people are most familiar. This series tries to compare the cost of things the average household buys such as food, housing, transportation, medical services, etc. For earlier years, it is the most useful series for comparing the cost of consumer goods and services. It can be interpreted as how much money would you need today to buy an item in the year in question if it had changed in price the same as the average price change.
* Source notes for CPI
# The GDP deflator is similar to the CPI in that it is a measure of average prices. The "bundle" of goods and services here includes all things produced in the economy, not just consumer goods and services that are reflected in the CPI.
* Source notes for GDP
# The unskilled wage rate is good way to determine the relative cost of something in terms of the amount of work it would take to produce, or the relative time it would take to earn its cost. It can also be useful in comparing different wages over time. The unskilled wage is a more consistent measure than the average wage for making comparisons over time.
* Source notes for Unskilled Wage
# The GDP per capita is an index of the economy's average output per person and is closely correlated with the average income. It can be useful in comparing different incomes over time.
* Source notes for GDP
# The GDP is the market value of all goods and services produced in a year. Comparing an expenditure using this measure, tells you how much money in the comparable year would be the same percent of all output.
When I ran these through my spreadsheet, the only one that made me happy was GDP shares.
The spreadsheet I ultimately presented was 20% of the initial rough draft. At one point it was 35 megabytes.
Using CPI gives a superstar player a salary of $1.4 million in 1927. That did not make me happy.