Suppose your father earned a salary of $35,000 in 1975, and by 2014, his salary had increased to $135,000. How much better off is he in terms of purchasing power? We can convert the $35,000 in 1975 dollars into 2014 dollars. When we do this, we find that the 1975 salary is worth $157,160 in 2014 dollars. So in terms of purchasing power, your father has suffered a significant loss over this long time period.