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How much inflation would be necessary to make $68000 worthless? If obviously can't be reduced to the buying power of $0 in today's dollars, because that would r
by DougWebb 13y ago
How much inflation would be necessary to make $68000 worthless? If obviously can't be reduced to the buying power of $0 in today's dollars, because that would require infinite inflation.
Let's break it down: $68000 annually is $5667/month or $186/day. Let's say 20% is intended to go to food: $37/day. That's a reasonable amount: for a couple they'd have to shop and prepare most of their own meals and wouldn't eat extravagantly, but they wouldn't be eating rice and beans for every meal either.
For $37/day to become essentially worthless for the purposes of feeding a couple, I think it's buying power would need to drop 66% to 75%. The latter gets you down to $9.25/day, which is rice and beans territory. It's still survivable, but you can't survive well on it.
This couple would still have the equivalent of $17000/year, which is about what one person working full-time at minimum wage would earn. So, if one of them gets a minimum wage job, they'd be earning as much as two people working minimum wage, while one stays home (perhaps to care for children and avoid the costs of child care.) That's already better than the system we have today, where both of them would have to work to earn that much and any children are left to fend for themselves much of the time.
If they both get minimum wage jobs, they're now earning as much as three minimum wage workers instead of two. Again, much better than today. This keeps one of their teenage children in school instead of joining the minimum wage workforce to help support the family.
All this is assuming that the entire economy is hammered by enough inflation to cause a 75% reduction in the earning value of a dollar. Historically, it takes decades for that to happen under normal circumstances, and I don't think that changing the way the government spends money that it's already spending anyway is likely to cause hyperinflation.