One dollar in 1950 had far more buying power than one dollar does now. Something that cost a dollar in 1950 would cost nearly $14 in 2026.
The halfpenny, when discontinued, could purchase roughly as much as 12¢ could today.
At that time, it was decided that a halfpenny wasn’t necessary, as transactions were of a high enough value that made tracking the numbers to the half-penny needless, and that you could just round to the nearest penny.
The equivalent today would be rounding to either the nearest dime or quarter, eliminating the need for smaller denomination coins.
Let’s say that, in 1950, you could buy 10 apples for a dollar. Would you agree that, in 1950, 10 apples were “worth” $1? One dollar’s “worth” of apples was 10 apples?
Now, let’s say today I can buy one apple for one dollar. Would you agree that 1 apple was “worth” one dollar? That one dollar’s “worth” of apples was 1 apple?
Now, if we assume that the “buying power” of a dollar is measured in “how many apples a dollar can buy,” that my current dollar is “worth less” than a 1950 dollar, because it purchases me fewer apples? That the two “dollars” have a different “number of apples I can buy” property?
Yes, in each case I’ve purchased a “dollars worth of apples,” but it’s very much meaningful to define how many apples that is, and track how that changes over time.
And if I cancelled the halfpenny because it wasn’t worth having when it could only buy 1 apple, but right now it takes 12 pennies to buy 1 apple, then perhaps I should have gotten rid of the penny a long time ago. And the nickel. And probably the dime.
One dollar in 1950 had far more buying power than one dollar does now. Something that cost a dollar in 1950 would cost nearly $14 in 2026.
The halfpenny, when discontinued, could purchase roughly as much as 12¢ could today.
At that time, it was decided that a halfpenny wasn’t necessary, as transactions were of a high enough value that made tracking the numbers to the half-penny needless, and that you could just round to the nearest penny.
The equivalent today would be rounding to either the nearest dime or quarter, eliminating the need for smaller denomination coins.
But something worth a dollar in 1950 is worth the same as something that’s worth a dollar now in 2025.
Okay, let’s try to break it down for you.
Let’s say that, in 1950, you could buy 10 apples for a dollar. Would you agree that, in 1950, 10 apples were “worth” $1? One dollar’s “worth” of apples was 10 apples?
Now, let’s say today I can buy one apple for one dollar. Would you agree that 1 apple was “worth” one dollar? That one dollar’s “worth” of apples was 1 apple?
Now, if we assume that the “buying power” of a dollar is measured in “how many apples a dollar can buy,” that my current dollar is “worth less” than a 1950 dollar, because it purchases me fewer apples? That the two “dollars” have a different “number of apples I can buy” property?
Yes, in each case I’ve purchased a “dollars worth of apples,” but it’s very much meaningful to define how many apples that is, and track how that changes over time.
And if I cancelled the halfpenny because it wasn’t worth having when it could only buy 1 apple, but right now it takes 12 pennies to buy 1 apple, then perhaps I should have gotten rid of the penny a long time ago. And the nickel. And probably the dime.