The term “millionaire” is deeply ingrained into the U.S. culture. Everybody dreams of being one, assuming their financial worries would then be in the past.
Maybe not.
A classic television show entitled The Millionaire ran from 1955 to 1960. Random individuals were chosen to receive a life-changing check from a millionaire for $1,000,000. In that era a million dollars pretty much got the job done … financially. But it didn’t guarantee happiness. It was a fun show, although Queen for a Day was more lively and entertaining.
These days, a couple of the most popular shows are Who Wants to be a Millionaire and Deal or No Deal. There is plenty of intrigue as the ongoing battle between greed and fear plays out before your eyes.
A million dollars is pretty much timeless. Or is it? Let’s look into that premise.
Source: Federal Reserve Bank of Minneapolis ‑ Consumer Price Index and Inflation Rates, 1913‑
“The Consumer price index shows the average change of prices over time in a market basket of goods and services. This measures the rate of inflation”.
A million bucks is nothing to sneeze at, in 1958 or 50 years later in 2008. The dollars haven’t changed, but what you can buy with them certainly has! Let’s put the 1958 price level at 29 and the 2005 level at 195, according to this chart. That gives us a 6.7-fold increase in prices during that time period. This is according to official statistics that definitely understate the case. As you well know, nothing good has happened along these lines since 2005. Big ouch.
To give away as much money as The Millionaire was portraying in the late 1950s would now require an equivalent $6.7 million. Wake up, TV producers!
The American dream of becoming a population of millionaires is getting closer by the day, thanks to debasement of the money. Unfortunately, a family will still require two incomes should that timeless goal come into fruition.
The term “millionaire” has lost its meaning. It needs to be replaced with “multi-millionaire” and soon “deca-millionaire.” “Millionaire” is heading the way of “buggy,” “top hat,” “cinema,” and “parasol.” How quaint.
Pop culture does little to help the masses understand money … most of the time. Here’s an exception:
My fellow Scotsman, Scrooge McDuck, had it right all along! Some things are timeless.
Invest Resourcefully,
Rusty
This post has been edited by Puppies: Jan 25 2008, 02:13 PM
