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This was a time of the biggest inflation in US modern history. The treasury rate was >15%, double what it was five years earlier, and triple of 10 years prior.
by mywittyname 6y ago
This was a time of the biggest inflation in US modern history. The treasury rate was >15%, double what it was five years earlier, and triple of 10 years prior.
These people were probably getting 4-5% annual raises at a time when inflation was going at over 10%. The 35% raise was probably just to bring them back up to their baseline.
For reference, using the BLS CPI calculator, $10,000 in 1975 was $17,000 in 1981. That's insane. And those are the official BLS numbers, which most of us feel undersell inflation.
- nomercy400 6y agoI'm curious, do you also have the numbers for 1980-1990, 1990-2000, 2000-2010, 2010-2020? I can't place your number in perspective.
- mywittyname 6y agoYeah, good question, I should have cited these numbers: I got the treasury yields here: http://www.fedprimerate.com/10-Year-US-Treasury-Yield-History.htm http://www.fedprimerate.com/10-Year-US-Treasury-Yield-Histor... For the inflation stats, I used the BLS Inflation calculator here: https://www.bls.gov/data/inflation_calculator.htm https://www.bls.gov/data/inflation_calculator.htm
- loceng 6y agoAnd this thread of comments here lets us know that shallow narratives still perpetuate/ripple many decades later, hiding the detailed truth - which we're all prone to.
- nomercy400 6y agoFor completeness: 10000 USD in Start was worth Result at End: Start-End: Result 1920-1930: 8860 1930-1940: 8128 1940-1950: 16906 1950-1960: 12468 1960-1970: 12901 1970-1980: 20582 1980-1990: 16375 1990-2000: 13249 2000-2010: 12837 2010-2020: 11905 For contrast 1990-2020: 20248 Yeah, the period you mentioned wasn't fun. I guess the last 30 years weren't so bad. Kind of strange how things feel to get so much more expensive while money doesn't devaluate that much.