According to the U.S. Consumer Price Index, one dollar in 2025 has the same purchasing power as 12 cents in 1970. This means the U.S. dollar has lost about 88% of its purchasing power. The primary driver of this is inflation caused by government creating and circulating more money than needed by the economy. This causes the purchasing power of money to shrink and prices to increase. Governments engage in inflationary policies to effectively tax citizens at higher rates and to default on their national debts. Also, government regulations can have inflationary effects because they often ban people from using the most economical products and processes. Market forces can also have inflationary effects when there is a sudden increased demand for products and services or a shortage of them.