U.S. Dollar Has Lost 97% of Its Purchasing Power Since 1913, Whale Insider Says

U.S. dollar has lost 97% of its purchasing power since the Federal Reserve was founded in 1913, according to Whale Insider.

The U.S. dollar has lost 97% of its purchasing power since the Federal Reserve was founded in 1913, according to a claim shared by Whale Insider on X.

The figure points to the long-term decline in the amount of goods and services that a dollar can purchase compared with its purchasing power when the Federal Reserve was established. Whale Insider presented the 97% figure as a measure of the dollar's decline over the period since 1913.

Claim Links Dollar Purchasing Power to 1913

Whale Insider's post specifically links the reported loss in purchasing power to the founding of the Federal Reserve in 1913. The post does not provide a methodology, inflation index, calculation or source for the 97% figure.

Purchasing power generally refers to the quantity of goods and services that a unit of currency can buy. Over long periods, changes in consumer prices can reduce the amount of goods and services that can be purchased with the same nominal amount of money.

The 1913 reference is significant to the claim because the Federal Reserve was established that year under the Federal Reserve Act. However, the X post itself does not provide additional historical data explaining how the 97% figure was calculated or which measure of prices was used.

Long-Term Measure of the Dollar's Value

The statement shared by Whale Insider focuses on purchasing power rather than the dollar's exchange rate against other currencies or its value in financial markets.

A decline in purchasing power is typically assessed through changes in prices over time. A dollar used to purchase a particular quantity of goods in an earlier period may purchase a smaller quantity of comparable goods after sustained increases in prices.

Because Whale Insider did not include supporting calculations or identify a specific inflation measure in the post, the 97% figure should be treated as the source's stated claim rather than an independently verified calculation.

The post also does not attribute the change to a specific monetary policy decision or provide an assessment of the Federal Reserve's role in the reported decline. It simply states that the U.S. dollar has lost 97% of its purchasing power since the central bank was founded.]

1913 Remains the Reference Point

The Federal Reserve's founding in 1913 provides the starting point identified in Whale Insider's claim. The post does not specify a separate endpoint beyond the present period or provide annual figures showing how purchasing power changed over time.

As a result, the 97% figure is presented as a cumulative historical measure rather than a year-by-year account of the dollar's purchasing power.

writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
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