Purchasing Power of the Dollar
Thomas Henriques • September 23, 2025
If there is one consistent theme in the history of paper (or fiat) currency, it is its devaluation.
And it is relentless:
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% decline.
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% decline.
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% decline.
These figures show how inflation has eroded the dollar’s purchasing power substantially across all intervals, with the impact accelerating over three decades.
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