inflation without income inflation

[kev374]

yes, I understand the traditional relationships – that the buying power is decreased.

However, I wanted to determine the value of the currency as how much effort it would take to obtain that money…which is how that $1000 is view as in the effort to obtain it.

I am trying to see if the money would have the same perception of value by people… in the context of how hard it is to obtain it.

If it took you 8 hrs of sweat to obtain $10 today and 5 years from now it is the same then how would you value $10? Regardless of how much things cost.

Yes, if we earned more and things cost more then something of a fixed value, that $10 would be less significant. But what if income was constant.

[vagabondo]

Money is a means to some other end. If I am required to work harder or longer to acquire the same good or service, I would perceive that my effort, and thus the means by which I can acquire that good or service, to be worth less.

[vagabondo]

Money is a means to some other end. If I am required to work harder or longer to acquire the same good or service, I would perceive that my effort, and thus the means by which I can acquire that good or service, to be worth less.

[vagabondo]

Money is a means to some other end. If I am required to work harder or longer to acquire the same good or service, I would perceive that my effort, and thus the means by which I can acquire that good or service, to be worth less.

[vagabondo]

Money is a means to some other end. If I am required to work harder or longer to acquire the same good or service, I would perceive that my effort, and thus the means by which I can acquire that good or service, to be worth less.

[vagabondo]

Money is a means to some other end. If I am required to work harder or longer to acquire the same good or service, I would perceive that my effort, and thus the means by which I can acquire that good or service, to be worth less.

[peterb]

Money is purchasing power. Most things that cost $50 in 1990 dont cost $50 anymore.They cost more. Therefore, if you put that $50 you earned in 1990 under a mattress and then took it out today, it would buy a lot less than it did in 1990. Yet, it’s still $50. Price inflation does not have to be preceded nor followed by wage inflation. This has been proven many times. The fact that you earned $50 in 1990 and it took you the same amount of effort to earn $50 today means that you have in actuality made less in purchasing power. Which is all money really is.

[peterb]

Money is purchasing power. Most things that cost $50 in 1990 dont cost $50 anymore.They cost more. Therefore, if you put that $50 you earned in 1990 under a mattress and then took it out today, it would buy a lot less than it did in 1990. Yet, it’s still $50. Price inflation does not have to be preceded nor followed by wage inflation. This has been proven many times. The fact that you earned $50 in 1990 and it took you the same amount of effort to earn $50 today means that you have in actuality made less in purchasing power. Which is all money really is.

[peterb]

Money is purchasing power. Most things that cost $50 in 1990 dont cost $50 anymore.They cost more. Therefore, if you put that $50 you earned in 1990 under a mattress and then took it out today, it would buy a lot less than it did in 1990. Yet, it’s still $50. Price inflation does not have to be preceded nor followed by wage inflation. This has been proven many times. The fact that you earned $50 in 1990 and it took you the same amount of effort to earn $50 today means that you have in actuality made less in purchasing power. Which is all money really is.

[peterb]

Money is purchasing power. Most things that cost $50 in 1990 dont cost $50 anymore.They cost more. Therefore, if you put that $50 you earned in 1990 under a mattress and then took it out today, it would buy a lot less than it did in 1990. Yet, it’s still $50. Price inflation does not have to be preceded nor followed by wage inflation. This has been proven many times. The fact that you earned $50 in 1990 and it took you the same amount of effort to earn $50 today means that you have in actuality made less in purchasing power. Which is all money really is.

[peterb]

Money is purchasing power. Most things that cost $50 in 1990 dont cost $50 anymore.They cost more. Therefore, if you put that $50 you earned in 1990 under a mattress and then took it out today, it would buy a lot less than it did in 1990. Yet, it’s still $50. Price inflation does not have to be preceded nor followed by wage inflation. This has been proven many times. The fact that you earned $50 in 1990 and it took you the same amount of effort to earn $50 today means that you have in actuality made less in purchasing power. Which is all money really is.

[HarryBosch]

You always value the money based on what it can purchase.

If someone gave you $10 then would you “value” that $10 more or less than if you had earned it?

Say I’m homeless, I dont work and someone gives me $10. I will value that $10 based on the amount of food and/or liquor I can purchase.

If I earned that $10 I would still value that $10 on the amount of food and/or liquor I can purchase.

[HarryBosch]

You always value the money based on what it can purchase.

If someone gave you $10 then would you “value” that $10 more or less than if you had earned it?

Say I’m homeless, I dont work and someone gives me $10. I will value that $10 based on the amount of food and/or liquor I can purchase.

If I earned that $10 I would still value that $10 on the amount of food and/or liquor I can purchase.

[HarryBosch]

You always value the money based on what it can purchase.

If someone gave you $10 then would you “value” that $10 more or less than if you had earned it?

Say I’m homeless, I dont work and someone gives me $10. I will value that $10 based on the amount of food and/or liquor I can purchase.

If I earned that $10 I would still value that $10 on the amount of food and/or liquor I can purchase.

[HarryBosch]

You always value the money based on what it can purchase.

If someone gave you $10 then would you “value” that $10 more or less than if you had earned it?

Say I’m homeless, I dont work and someone gives me $10. I will value that $10 based on the amount of food and/or liquor I can purchase.

If I earned that $10 I would still value that $10 on the amount of food and/or liquor I can purchase.

[Author]

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