How much is money worth?

Bartering, or trading items for other things, is found in all ancient and present civilizations. Prior to the use of coins or paper banknotes, societies bartered to get the things they wanted or needed. Throughout this time of bartering, certain items held specific value.  Eventually, standard items would be used, again and again, to “purchase” other things.

Many items have been used as money throughout the world.  Cattle, cowrie shells, feathers, salt, ivory, whales’ teeth, jewelry, and tools have been used as money for some societies. North American Indians used Wampum, strings of white beads made from clam shells, as money. Eventually, most societies used coins and paper money for trade. It’s easy to see that the other forms of money might become cumbersome, although today some societies still use and prefer barter in place of money.

Metal coins have been used as money as far back as 1000 BC.  The Chinese created bronze and copper imitations of shells at the end of the Stone Age. In 118 BC, one-foot-square pieces of white deerskin leather were used as money in China. Some people consider the leather pieces the first banknote. By 806 AD, the first paper banknotes were used in China.

In 1816, gold became the standard of value in England. The worth of banknotes was tied to the value of gold. In 1900, the Gold Standard Act officially tied banknotes to gold in the United States. This gold standard lasted only until the 1930s.

Today, the value of money is most easily measured by comparing the goods that can be purchased now with what could be purchased in the past. A gallon of milk sold for $1.69 in 1980. The cost of that milk today would average $2.49 a gallon.

A dozen eggs cost 24 cents in 1927 and nearly 89 cents today. 

Be sure to store eggs in a refrigerator. A refrigerator in 1927 cost about $195. A 25.2-cubic-foot refrigerator with an ice crusher and water dispenser costs nearly $1000.00 today.