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by throw893232 1995 days ago
Little trick for a piece of mind:

Recalculate prices and salary into gold. You will discover that things are more or less the same and stable. Shoemaker in 15th century made similar money as today.

2 comments

Given that the gold price has increased by a factor of 8 in the last 20 years it's hard to see how that could be true. Even if it happens that there's an equivalence between today and 1450, a shoemaker in 2000 would be earning 8 times more.

EDIT: To put it another way, over the last 20 years the Dollar, Euro and Pound have all approximately averaged out to their target 2% inflation rate. Prices in gold terms have averaged to 9% deflation per year. Since 9 > 2, gold is less stable than modern fiat currencies.

Not sure shoemaker is a good example. Wouldn't that today be Nike, Adidas, huge corporations and not individuals?

An individual shoemaker today is probably in the luxury business.