Money printer goes brrrr
Jan 17, 2025
For those who haven't figured out the value of money yet:
— Zero HP Lovecraft 🦅🐍 (@0x49fa98) January 15, 2025
$100,000 now =
$70,000 in 2010
$56,000 in 2000
$43,000 in 1990
$27,000 in 1980
Your intuitions about how much money is worth are wrong. 100k a year is a bad wage in 2024
A very simple way to look at the destruction of the value of money is to compare salaries and housing prices. One hour away from Toronto, there's a house for sale in the area. 1,600 square feet. Price is $975,000. A $800,000 mortgage for 30 years would result in $4,400 in monthly payments at current interest rates. Add property tax and maintenance, and one gets $6,000 a month for just shelter. That's $72,000 a year for an average, old house in a city with under 1 million people.
If one made an annual salary of $100,000 in Ontario, Canada, then the entire after-tax income would go towards the house bills: mortgage + tax + maintenance + utilities!
Converted to a wage, this salary would be $50/hr with only two weeks off in the year!
In other words, a couple working together, making a combined $100/hr would still find it difficult to afford such a basic house. Given the importation of cheap labor and advancements in AI, their jobs are likely fragile. They rent or get in an overpriced, tiny condo.