The U.S. Dollar Has Lost Nearly Half Its Purchasing Power Since 2000

The U.S. dollar has lost almost half of its purchasing power over the past 26 years.
An item costing $1,000 in 2000 would require roughly $1,940 today to buy the same amount of goods and services.
That means the purchasing power of cash has fallen dramatically even without any single period of hyperinflation.
The decline comes from inflation compounding year after year.
For investors, this is why nominal returns can be misleading.
If an investment grows slower than inflation, the number in the account may rise while real purchasing power still falls.
Over long periods, preserving wealth means earning returns that can consistently outpace inflation rather than simply holding cash.