How do I find out value in today's dollars?

my inquisitive mind | 10/14/2001

[Heisenburger]

I am giving a speech on the Marshall Plan. The final total the U.S. gave in aid to Europe was $13 billion in 1948's dollars. How do I adjust that money for inflation to figure out what the equivalent is in today's dollars?

[Heisenburger]

Any help would be appreciated.

[good_ash]

No offense, but did you try doing a search before asking? It was the first result on google:

http://www.google.com/search?q=inflation+calculator

[epow]

Try this. http://www.westegg.com/inflation/

[eabinga]

Try http://www.cjr.org/resources/inflater.asp

[cinFLA]

http://www.jsc.nasa.gov/bu2/inflate.html Did you try a web search? I found the above in less than 15 seconds!

[MFSanders]

Very simple. Do you a spreadsheet like Excel? If so, simply downland the consumer price index (CPI) from the web (can be found by using a search engine such as Google or Hotbot) and paste into Excel. You put the value in 1948 in the first cell in a column next to the CPI data. Multiply the value of the 1948 value by 1+CPI for 1949 (if annual CPI is used). The multiply this new value by 1+CPI for 1950, etc., etc. Eventually, you will get the 1948 value grossed up to 2001.

If you use monthly CPI, it is the same procedure. Using the copy and paste command to perform the operation.

I hope this helps.

[cactmh]

There will be some type of index. You will multiply that number by the 1948 dollars...

[ex-Texan]

And the answer is?

[epow]

I see the inflation calculator I referenced only goes to the year 2000. I would take that figure and multiply by about 1.05 to get a current figure, or about 1.035 to get a figure for the beginning of year 2001. It's going to be in the ballpark of $100 billion.

[Justice]

What cost $13000000000 in 1948 would cost $96842756713.51 in 2000.

Equivalently, if you were to buy exactly the same products in 2000 and 1948, they would cost you $13000000000 and $1745096956.50 respectively.

Click Here for calculator.

[gfactor]

was the marshall plan aid (gifts) or loans? at what interest? and how much did america profit from the loans?

I'm too lazy to look this up, figured you might know...

[sugar_puddin]

And the answer is?

You just subtract .99 from a dollar. LOL!

[robnoel]

1948 $1.00 ..2001 $7.48...according to the Fed

http://minneapolisfed.org/economy/calc/cpihome.html

[RDangerfield]

Here is a converter formula:
link --Raoul

[RLK]

The figures here are a little low. In about 58 the Eisenhower budget was an incredible $50,000,000,000. In 1948 a yearly salary of $6,000 per year was large. The average national salary was about $55.00 per week.

[cinFLA]

Many of the prices involved are artificially supported, and overall there has been a remarkable decline in the quality of many other things.

Overall, the quality of items has increased tremendously. For example, compare the quality of a car radio! Few lasted more than few years and were terrible battery drainers. How about clocks and watches? TV's of yesteryear required much maintenance to keep alignments and tubes replaced. I remember color TV's had to be adjusted periodically.

[cinFLA]

The biggest thing is that in 1948 you could raise a family on a one person income of 10,000, and in most families today a comfortable income level requires two folks working.

Reduce income taxes and go back to the 1948 standard of living and you can still live on one salary!