1971: -Gold was $43/oz -Average hourly wage was $3.70 -Time needed to buy one oz of gold: 11.6 hours 2026: -Gold: $5,000/oz -Average hourly wage: $28 -Time needed to buy one oz of gold: 179 hours What does this mean? Your time is literally less valuable today than it was 50 years ago. Look at it this way: In 1971: Work 12 hours ➡️ get 1 ounce of gold In 2026: Work 12 hours ➡️ get 0.07 ounces of gold Gold is still gold. One hour is still one hour.

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This data point only tells you that gold becaimore expensive, it doesn't tell you if the general cost of living became more expensive. For that you will need to create a basket of goods and compare between the two dates.
Your math is technically correct, but the comparison is misleading. In 1971 the dollar was still officially tied to gold at $35/oz for governments — market forces were constrained and the dollar’s role was different. Once Nixon closed the gold window, gold was allowed to float and its dollar price shot up (to about $180 by 1974) as the dollar lost purchasing power. So you're not wrong. The effects just have been less extreme.
when the ledger devalues your hours, you build your own currency. artists have known this for centuries. what happens when value flows peer to peer, through the work itself?
Economista Austriaco 's avatar Economista Austriaco
1971: -Gold was $43/oz -Average hourly wage was $3.70 -Time needed to buy one oz of gold: 11.6 hours 2026: -Gold: $5,000/oz -Average hourly wage: $28 -Time needed to buy one oz of gold: 179 hours What does this mean? Your time is literally less valuable today than it was 50 years ago. Look at it this way: In 1971: Work 12 hours ➡️ get 1 ounce of gold In 2026: Work 12 hours ➡️ get 0.07 ounces of gold Gold is still gold. One hour is still one hour.
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Gold is no more valuable today than at any time in history. There are temporary fluctuations, but over the long term it's tracking relative monetary debasement.
The average hourly wage in 1975 was $6.03 * 12 hours = 0.402oz gold. That's still far less than 0.07 oz gold you get for 12 hours today. The Cantillon Effect is working as intended. 🧐
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G Force G yesterday
But you are wealthier because you own a big TV full of blue light. All your ultra processed food is ultra affordable.
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G Force G yesterday
Yeah it really means that the timeline starts before the dollar was pegged to $35 an oz.
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G Force G yesterday
Nostr is great because instead of beimg mind blown over it the standard response is "I know, actually its worse than that."
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adeninvest 17 hours ago
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