Plummeting payments

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.

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3 comments

  1. Back in the states, we don’t feel the pinch as much as you it seems, but we’re definitely aware of it. The government’s response: Here’s some money, now go spend it.

    Side note: how do taxes work for you?

  2. We are facing inflationary pressures here at home. The high cost of energy is getting passed on into items like food and other items. The home loan scandal has rippled through our economy and suddenly, Iraq is not on the front burner anymore, issues closer to home are taking precedent. Add an election cycle, suddenly our military issues are not in the forefront. My brother-in-law in the Canaries is trying to complete a home that gets increasingly expensive as USD is converted into Euros. He thinks the USD will no longer be the exchange standard within the next five years. Hang in there!!

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