This spreadsheet from the Fed's own website tracks the "inflation rate" from 1800-2008. The last column (added) tracks the price movements of a basket of goods and services that cost $100.00 in 1800. As you can see, prices dropped dramatically over time throughout the 19th century. That same basket of goods that cost $100.00 in 1800 cost only $56.74 in 1912...
...Now, look at the same basket of goods from 1913 (the year the Fed was created) through 2008. You see exactly the opposite trend. The same basket of goods that cost $56.74 in 1912 now costs $1,265.14. Obviously, even the more dramatic increase in wages during this period has not kept up with the increase in prices. This makes the average worker poorer.
Read the rest here.