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70 sats \ 4 replies \ @TheBTCManual 22 Jun \ on: How Long Can Each Generation Survive Without Income? econ
Nominal wealth/wealth effect at work, inflation adjust those values and lets see
$259k @ 2320 USD per ounce is 111 ounces
$184k @ 780 USD per ounce (2006) is 235 ounces
$150k @ 400 USD per once (1990) is 375 ounces
Yes, and looking back to the 60s you can see why a single earner was all a family needed. Most telling is looking at minimum wage (ignoring the 'average salary' of the above graph, and focusing on just the lowest earners).
In 1964 minimum wage was $1.25, which comes out to be $50 per week....Gold was $35/oz so that equals about 1.4 oz per week. This of course equates to about $3000 per week in 2024 dollars.
So yes, a McDonalds worker in 1964 could support a family and own a house / car.
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If we see it from that perspective, it is quite true how over the years the purchasing power of lower or middle class workers has evaporated... and obviously how gold has always been a very valuable asset and will continue to be so. its price and value has risen... families, for example in South America, which is where I am, must work at least both Father and Mother of the family to be able to advance and cover basic expenses and as is my case, I am a migrant, we do not have anything. easy...
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It's not an ideal measuring stick, but the best one we have with a long track record, I mean gold has also had its own inflation rate over that time period and we don't really know how much gold is out there, versus paper claims.
Also if we look at the effective tax rates, they also got to keep more of their salary each month and didn't have all the consumption taxes we have now
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What is the biggest reason?
Housing cost has increased substantially since 1971.
Growing financial sector and finance becoming the center of the economy
The middle and working classes have been screwed for the last 50 years at least. Ignored by both parties. These are modest income folks who lack the romance of welfare recipients
I realize this is important topic that cannot be answered in a single comment
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