Value of a Dollar
February 6, 2024•396 words
Not all dollars are the same.
They aren’t the same in how they’re earned nor in how they’re spent.
Earning a Dollar
Consider a dollar earned through legitimate means versus one earned illegally or immorally.
In the case of the legitimately earned dollar, the Earner can sleep well knowing that according to the laws of the country in which it was earned, it belongs to them. And according to the customer or employer who gave it to them, it is the Earners’ as a reward for providing something of value. Everyone agrees that this dollar belongs to the Earner and thus that dollar is worth a dollar.
In the case of the illegally or immorally obtained dollar, the Obtainer will have no peace. The law enforcement of the government in which he resides will eventually take it from him. The victims who he took the dollar from will forever be trying to get it back. And everyone who knows how that dollar was obtained will argue that the dollar should be returned to the victims or to society. Given that others have claim to it, the illegally obtained dollar does not belong to the Obtainer and thus its value is something less than a dollar. In other words, there is a hidden tax and constraint on the illegally or immorally obtained dollar.
Other earning considerations:
- A dollar earned privately versus one that depends on fame
- A dollar earned in freedom (of location, schedule, choice of peers, etc) versus one earned with constraints (strict schedule, specific location, unfavorable peers, etc)
- A dollar earned as a paycheck versus business income versus royalties versus capital gains, etc
- A dollar earned joyfully versus a dollar earned while hating what you do
Spending a Dollar
The second consideration is spending a dollar.
If you live in rural Kansas and pay $500 per month for a studio apartment, a dollar is worth 1/500 of your rent.
But if you live in Manhattan and pay $2,500 for the exact same apartment as our friend in Kansas, a dollar is worth 1/2,500 of your rent.
A dollar for rent is worth 5x more in Kansas then in Manhattan in this example.
Of course there is a lot of nuance skipped here but the point is valid. Where and how you spend the dollar matters in determining it’s value.