alt Hacker NewsMany people here make more than they spend, and this is simply inaccurate when that's the case.
edit: I've explained how this works in a reply below.
Replies
bauldursdev • today at 4:03 PM
No, it's like, if you could buy 100 things before, but you can only buy 96 things now, then you have accumulated less value :D
ncr100 • today at 4:10 PM
I disagree. "Money" has many meanings, absolute and relative.
Receiving "market" compensation trumps real-world expenses, since the market for one's labor is a different market than the real-world expenses.
jayd16 • today at 4:01 PM
It's still a cut in purchasing power even if you aren't hurting.
But if you don't mind, I'll take 4.2% from your pay.
pishpash • today at 4:01 PM
No. What isn't spent now is future spending. You are still getting less.
How is it inaccurate? If I only care about buying apples, and apples get 10% more expensive, and my salary only increases by 5%, then I can't buy as many apples as I could have before. How many apples I do actually buy in the end is irrelevant to the calculation.