The dollar has been plummeting in value. Have you noticed? Living here in Chile, I sure have. Especially since my salary is paid in US dollar. When I arrived, I could get 510 Chilean pesos to a dollar, today it was down to 475 Chilean pesos to a dollar at best.
This may not seem like a huge difference, but lets look at a hypothetical situation. Say I earn 1,000 USD a month (This is not my salary, but it is a nice round number). That means that when I got hee I made 510,000 Chilean pesos per month. Now, I would be making 475,000. That is a 35,000 Chilean pesos of difference. To give you an idea of what that looks like in my life here are some costs:
- A bottle of red wine: 3,500
- A liter of milk: 595
- A cell phone: 27,500
- A round trip bus ticket to the capitol: 5,800
So, really, the plummeting dollar, for me, means plummeting salary.