Friday, November 02, 2007

I'm not sure how to interpret this has an article about inflation, and how it affects investments. In the article, they have a little graphic comparing the cost of things in 1972 to the cost today and what the cost would be today, adjusted for inflation. If today's cost is less than the inflation-adjusted cost, it's a good value, if it's more, it's a bad value. One of the comparisons they make is Presidential salaries:

Richard Nixon's salary in 1972: $200,000
George W. Bush's salary in 2007: $400,000
Nixon's salary, adjusted for inflation: $996,645.94

So W is a good value relative to Nixon? Is that a good thing? I'm confused.

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