So if you just got a 2 dollar per hour raise but the dollar has been devalued ,did you really get a raise?


4 Answers

Mary Stieh Profile
Mary Stieh answered
I beg to disagree, When a currency is devalued, (it's buying power is decreased), inflation occurs and the per unit price of commodities will appear to rise.

Your two dollar an hour raise will be meaningful, in buying power, only if the devaluation of the currency results in an additional cost of less than 2 dollars an hour.

Another way to look at this is: Do I make any additional money by taking a job 20 miles further from home to make a extra $2.00 an hour? In this case my additional transportation cost can not exceed $16.00 a day.
Anonymous Profile
Anonymous answered
Yeah you just got 2 dollars pay rise if I'm not mistaken, that is what I believe you have just said
Janey Profile
Janey answered
When a currency becomes devalued, deflation occurs, which in turn leads to cheaper goods and cost of living.So everybody is still in a win-win situation.
thanked the writer.
John commented
Is this really true for everthing if gas is still higher than the decline of oil pricing ? In other words is there a exception to the rule if gas is not taken into consideration for inflation and spending when knowing you still need the same amount of gas no matter if the price goes up or down. : ). Just thinking out loud.
ja sav Profile
ja sav answered
You didnt said completely or partially , completely then you may be able to use it in your country only , partially then it wont make any difference I guess

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