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I think you can reasonably estimate this simply. If you imagine that in any good or service you buy, there is a percentage that goes to salary and taxes and a
by mikekchar 10y ago
I think you can reasonably estimate this simply. If you imagine that in any good or service you buy, there is a percentage that goes to salary and taxes and a percentage that goes to some physical thing. Now, assume that the physical thing's cost is 100% due to energy. It will be less than this, but even with this upper bound, it's not very high. For example, imagine a pair of shoes. You pay $100, but materials cost maybe $10. My guess is somewhere between 10-20%. My guess is that if energy costs were zero, the cost of living would still be at least $50K (in this stated scenario -- I actually have a hard time believing the cost of living is so high in the US).