Inflation!
The U.S. dollar experienced an average inflation rate of 2.09% per year during this period, causing the real value of a dollar to decrease. In other words, $4,000 in 2000 is equivalent in purchasing power to about $6,045.99 in 2020, a difference of $2,045.99 over 20 years. The 2000 inflation rate was 3.36%.
The U.S. dollar experienced an average inflation rate of 2.09% per year during this period, causing the real value of a dollar to decrease. In other words, $4,000 in 2000 is equivalent in purchasing power to about $6,045.99 in 2020, a difference of $2,045.99 over 20 years. The 2000 inflation rate was 3.36%.