Answer: Ruth's $80,000 in 1931 would be worth about $980,000, as of mid-2004. (Bonus: Find a baseball player who makes that much today.)
How do I find that? Based on the Consumer Price Index from the Bureau of Labor Statistics, part of the U.S. Department of Labor. The BLS calculator is at its Consumer Price Indexes page. Its calculator allows only numbers less than $10,000, so use $8,000, and then multiply the result by 10.
And a private calculator, based on the same information, allows regional calculations, from George Landau's NewsEngin Cost-of-Living Calculator. Choose "all items" if you like, then "U.S. city average" or your region, and fill in the form. These two numbers may vary a bit, depending on how up to date each site is.
Comment: The Consumer Price Index is an imprecise measure of inflation. Remember that it measures the buying power of a dollar, based on a market basket of goods. The items in the basket don't change often enough to keep up with changes in consumer tastes. And not everyone spends money on the same goods. (Babe Ruth and Mark McGwire, for example.) So the CPI is good enough for a broad reference (such as Ruth's salary), but let's take more care if we're using it to say that the local school superintendent is seeking a raise that outstrips inflation.
How do I know this is right? First, if you use George's calculator, he gives the appearance of reliability. He explains how often he updates the data, and how the CPI works. (See Background.) Still, we are trusting his math. If you're the belt-and-suspenders type, you might have to look up the year-to-year inflation rate at the BLS, and do the computation yourself with a calculator or spreadsheet.
How do I attribute this? Better to attribute to the BLS. Your editor probably won't let you put George in all of your stories, and what makes him an authority anyway? In a whimsical reference, you may decide that no attribution is necessary. ("Ruth made less than an average relief pitcher makes today, adjusted for inflation.") In a more controversial context, you may need to be more specific.
Go on to Question 2
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You can reach Bill Dedman by e-mail at Bill@PowerReporting.com.
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