Explaining Inflation Through the SAT

A New York Times article from 1994 describes inflation well:

The S.A.T. score of the average American high school student will soon be going up 100 points. However, that doesn’t mean that anyone is getting smarter.

Beginning in April 1995, the College Board, based in Manhattan, will be recalibrating its scoring of the Scholastic Assessment Test. The bottom score will still be 200 and the top 800, but it will be easier for everyone to get higher scores.

A 430 score on the verbal section of the S.A.T. will suddenly become a 510 under the new scoring method. A 730 verbal score will become an 800.

Same with monetary inflation. More dollars to go around, but that doesn’t mean our wealth is increased.

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