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Joined 2 years ago
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Cake day: June 28th, 2024

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  • That’s the civil war tax. The accuracy of today’s government inflation statistics are contested, for example see ShadowStats as an alternative (although it doesn’t go back to the civil war). Per the St. Louis Federal Reserve, the average hourly pay rate was $0.098 per hour in 1860. Assuming 40 hours of work a week and 52 weeks per year, that equates to about $200 per year, which means $800 was four times average yearly wages.

    Today’s average yearly wage is somewhere around $60,000 per year. Multiply that by 4 and you’re at $240,000. I’m not sure I’d characterize that as rich, but it’s certainly upper middle class.

    My point is that your inflation statistic of $800 in the 1860s being equivalent to $28,000 in today’s dollars is not particularly believable.