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Constant Currency Units


    "The value of a dollar just isn't what it used to be...


Changes in inflation and cost of living cause units to have Arbitrary Value over Time

This is nothing new, and economists use 'Price Indexes' to account for fluctuations in 'value'. The problem is, it's hard for the average person to account for these indexes in their day to day transactions, additionally, the indexes are often arbitrary, weighing things like the cost of a big mac, which is hard to correlate to various products and services.

A proposal, a currency unit that is based on average annual salary cross referenced with average work time per year. This becomes intuitive because we all have drastically varying levels of wealth, but we all have around the same levels of 'time' available, and the market is more or less set up around the average persons expendables, and we can all, more or less, relate to or understand the finances of 'the average person'.

A unit like this would allow for someone to easily understand what they should pay or what they should be paid for a service. It would be broken down into 3 classifications, AHS, ADS, AYS, that is, Average Hourly Salary, Average Daily Salary, and Average Yearly Salary. These are based on the average number of hours/days/years an America works per year, cross-referenced with the average salary of an American. So if I wanted you to work for me for 1 hour, I could offer to pay you 1AHS and you would know you are getting the average going rate for your labor, if I offered 1.5AHS you would know that you are getting a decent deal, 50% more in pay than what an average labor cost would be for the time provided.

The average American works 8 hours in a working day, so 8 AHS == 1 ADS (this rate is subject to change over time since this is a dynamic currency unit)
The average American works 260 days in a working year, so 260 ADS == 1 AYS (this rate is subject to change over time since this is a dynamic currency unit)

In 2019, the average annual salary of an American was $46,800. This means that at this moment in time 1 AYS is equivalent to $46,800. If I offer you a job paying 1 AYS per year you are getting an average salary, if I offer you a job paying 2.5 AYS per year then you should probably take it.

2019 Rates

  • 1 AHS = $22.50
  • 1 ADS = $180.00 = 8 AHS
  • 1 AYS = $46,800.00 = 260 ADS = 2080 AHS


  • This makes tracking value of time very easy, without need to account for inflation and other things, 40 years ago someone who was a millionaire was very wealthy, today it's not as impressive (comparatively speaking). However if you are worth 100 AYS, that's impressive regardless of what place in time you are in, because you're worth what someone would make working for 100 years.

    This is especially useful when tracking your salary, if you take on a job that pays 1 AYS, and you don't get a raise after 2 years, your salary is likely now somewhere around 0.94 AYS, and you can see that you need to get a new job. If you do get a raise each year, but your salary stays at 1 AYS, then you can become aware that your raise was artificial, and really just picking up the inflation slack, and your income hasn't really changed.

    This makes paying someone for a service very easy, come work for me for an hour, and I'll pay you 1 AHS. Come work for me for the day and I'll pay you 1 ADS, then you know it's a fair rate. It also makes calculating if you're paying too much for a product/service; if you are going to college for 1 year and it's costing you 2 AYS, then you're obviously not getting a good deal.

    This makes tipping easy to calculate as well, if someone provides a labor service to you and puts in, say, 1 hour of work, then you tip them 20% on the time, in this case 0.2 AHS (which is about $5 in 2019), this is good for a 1 hour labor task like pizza creation+delivery. If someone does a longer task like spending half of a business day repairing an AC unit in your house, then you can expect to tip them 20% of half of an ADS, that is, 0.1 ADS (which is about $20 in 2019).



    Ideas on this page inspired by the last chapters of Leviticus..


    free counter Oct 9 2019