The paper money printed and distributed by the United States government is what is called “fiat” money.
“Fiat” is Latin for “Let it be done,” so the money is just spoken into existence without anything of value behind it.
100% of the world’s fiat currencies (except the current ones) have gone to zero as governments inflated them to where they had no value.
Decline in U.S. Dollar Purchasing Power
Here is how the purchasing power of the U.S. dollar has changed over the past 10, 20, and 30 years:
Last 10 Years
(2015–2025)
- $1 in 2015 has the same buying power as $1.36 in 2025.
- A dollar today only buys about 74% of what it could buy in 2015.
- Purchasing power loss: About 26%.
Last 20 Years
(2005–2025)
- $1 in 2005 has the same buying power as $1.65 in 2025.
- A dollar today only buys 61% of what it could in 2005.
- Purchasing power loss: About 39%.
Last 30 Years
(1995–2025)
- $1 in 1995 has the same buying power as $2.12 in 2025.
- A dollar today buys just 47% of what it did in 1995.
- Purchasing power loss: About 53%.
A Silver Quarter Compared with a Paper Dollar
In 1947
A silver quarter would buy 1 gallon of gasoline. A paper dollar would buy 4 gallons of gasoline.
Today
That silver quarter will buy 2 gallons of gasoline, and the paper dollar won’t buy ½ a gallon of gasoline.
That is not because the silver quarter is rare or old. It is because the silver in the quarter has maintained its purchasing power.
For additional information on fiat money, go to Episode 1 of Hidden Secrets of Money. A link is in the Reference Information section of this website.