About Me

In writing the "About Me" portion of this blog I thought about the purpose of the blog - namely, preventing the growth of Socialism & stopping the Death Of Democracy in the American Republic & returning her to the "liberty to abundance" stage of our history. One word descriptions of people's philosophies or purposes are quite often inadequate. I feel that I am "liberal" meaning that I am broad minded, independent, generous, hospitable, & magnanimous. Under these terms "liberal" is a perfectly good word that has been corrupted over the years to mean the person is a left-winger or as Mark Levin more accurately wrote in his book "Liberty & Tyranny" a "statist" - someone looking for government or state control of society. I am certainly not that & have dedicated the blog to fighting this. I believe that I find what I am when I consider whether or not I am a "conservative" & specifically when I ask what is it that I am trying to conserve? It is the libertarian principles that America was founded upon & originally followed. That is the Return To Excellence that this blog is named for & is all about.

Sunday, April 26, 2026

Dow Jones 50,000 Quiz

The Dow Jones Industrial Average (DJIA) first crossed 1,000 in November, 1972 when the consumer price index (CPI) was 42.4.  Fifty-three years later in November, 2025 the CPI was 315.5 & the DJIA had reached 50,000.  How much of the increase in the DJIA over this time span is attributable to real purchasing power growth & how much to inflation?

Posted by ReturnToExcellence.net at 11:33 PM

4 comments:

  1. HowKMay 19, 2026 at 8:41 PM

    It looks like CPI went up approximately 7.4 times. So , the Dow would be 7400 or so if it was only changed by inflation. The other 42600 or so is due to factors other than inflation.

    ReplyDelete
    Replies
    1. RTEMay 19, 2026 at 8:45 PM

      The 1972 $1,000 is now worth $7,400 in inflation adjusted terms. So how many 7,400s are in 50,000 - with this you are well on your way to figuring this one out.

      Delete
  2. SRKMay 19, 2026 at 8:49 PM

    Oh my! Doug, I have NO idea!

    ReplyDelete
    Replies
    1. RTEMay 19, 2026 at 8:51 PM

      it is not so important for people our age to understand inflation but it is the most important aspect of economics young people will encounter especially starting out after graduation from high school or college. Please present this quiz to your students or other young people you know & let me know how they did. I will gladly show anyone who is interested how to figure this & most importantly explain the significance of why it is so key to the rest of their lives.

      Delete

Subscribe to: Post Comments (Atom)