The Mudcat Café TM
Thread #155175   Message #3648075
Posted By: GUEST
03-Aug-14 - 04:45 PM
Thread Name: BS: Comparative historical values
Subject: RE: BS: Comparative historical values
Money is highly non- linear.

The real value of money is how much of another person it can buy. That again depends on how much time they have to dedicate to staying alive. So before 1946 (in Britain), when there was very little social security, you could buy somebody's time very cheaply- he or she had to do something, anything- or starve. After that, up to the 1980's, you had to negotiate with their representatives to set a price, and people got very happy. Since then, Unions got threpped out, and even the people who would benefit from membership most are scared of joining them. That's why there's a slightly hopeless campaign for a "living wage" a little bit above starvation now.

In the 18th century, £30 would represent about 3 times the income of an ordinary reasonably comfortable labourer. So, if an unskilled labourer now would earn £15000 a year, (that's about 40 hours a week at the minimum wage), three times that would be about £45000 a year.

You can calculate it in many other ways too - take the beer standard- a quart for a penny. In my local pub, that's £6.20 now. 1488 times then, so the £30 rent becomes £44640 or £45000 to a nearest approximation- hey how about that for a coincidence.

But notice that sleight of hand above-mI comapred comfortable labourers (then) with minimum wage (now). And that's what has happened to ordinary decent people, thanks to you Daily Mailygraph types.