The average rate of inflation from 1917 through 2007 is 3.4%.  Whether that will hold true for the next 80 or 90 years remains to be seen.  When we can put on upper and lower limit envelopes, we see nothing that indicates a pattern that can guide us well, but it does appear that the wild swings of the early 1900's has settled down into milder swings.  But nothing in the past guarantees us that inflation won't again experience the wild swings of the past. 

In fact, it appears that the relatively stable, low inflation rates of the past 20+ years may be in for some tumultuous adjustments as crude oil prices appear to be rising on wild speculation.  Their also appear to be a significant change in the US policies making bodies, which may result in significantly different economic policies -- all which may adversely affect the rate of inflation.

 Assuming the average rate of inflation holds for the next twenty years, our dollar will have decreased in purchasing power value by nearly 50%.  In 40 years it will be decreased to nearly 25% of its purchasing power today.  And in 70 years it will have decreased to only 10% of its purchasing power today.   

©2008, Simon Revere Mouer III
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