The Decline of Purchasing Power

Many occupations come with a COLA (cost of living adjustment) raise each year to assist employees with inflation.  This year many employers have found it necessary to reduce or eliminate such adjustments  as a means of cutting costs. The Social Security program even announced last week that they do not intend to make any COLA this year or next.

With experts generally agreeing that inflation is taking place at an alarming rate, many Americans are finding it harder to make ends meet with their current paychecks.  Prices on basic goods and other necessities are going up but many salaries are not.

This is certainly not the first time in history that the decline of the dollar has hurt consumers. Click on the image to view the decline in the dollar’s purchasing power over the past century.