Fact Check: Adjusted for inflation, $400K in 1987 equals about $1.1 million today.

Fact Check: "Adjusted for inflation, $400K in 1987 equals about $1.1 million today."

What We Know

The claim that "$400K in 1987 equals about $1.1 million today" can be evaluated using the Consumer Price Index (CPI) data. According to the CPI Inflation Calculator provided by the U.S. Bureau of Labor Statistics, the inflation rate from 1987 to 2023 has been significant. Specifically, $400,000 in 1987 is equivalent to approximately $1,131,919.01 today when adjusted for inflation, reflecting an average inflation rate of about 2.78% over the period.

Analysis

The calculation of inflation-adjusted values is a well-established method used by economists and financial analysts to understand the changing value of money over time. The CPI is a reliable measure, as it reflects the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

The figure of approximately $1.1 million is corroborated by the data from the inflation calculator, which uses the official U.S. consumer price index to derive its results. This source is credible and widely accepted for inflation calculations. The methodology behind the CPI is transparent and based on extensive data collection, making it a reliable reference for understanding inflation impacts.

In contrast, other sources discussing economic conditions or political claims may not focus specifically on inflation calculations and could introduce biases or inaccuracies. For instance, a fact check on Bidenomics discusses broader economic metrics but does not address inflation adjustments directly. Therefore, while it provides context for economic discussions, it does not serve as a direct counter to the claim about inflation adjustments.

Conclusion

The claim that "$400K in 1987 equals about $1.1 million today" is True. The calculation based on the CPI inflation data confirms that $400,000 in 1987 has the equivalent purchasing power of approximately $1,131,919 today, validating the assertion made in the claim.