But the true culprit in devaluing the purchasing power of the dollar is the Federal Reserve.
This is why comparisons of prices and wages must always be “inflation-adjusted.” The minimum wage today ($7.25) is over three times what it was in 1977 ($2.30). Adjusted for inflation, however, it is actually 18% less. In other words, it is inflation that is makes the income less valuable. But most people don’t understand what inflation is, and they just take it as a given.
Who Is Holding Us Back? (via thefreelioness)