2
Salaries in communist countries and in USA
Recently I came across on archive article (published in 1985) in The New York Times entitled
IN POLAND'S WILD ECONOMY, DOLAR TALKS LOUDLY- LINK
According to the article, average monthly salary in Poland in 1985 was around 25 US dollars. Inspired by that information, I did further investigation and made comparative analysis about average salaries and GDP in several communist countries and in USA in 1980, in 1990 and today.
Countries included in analysis:
- USA
- YUGOSLAVIA (Slovenia)
- YUGOSLAVIA (Serbia)
- POLAND
- CZECHOSLOVAKIA
- SOVIET UNION
- HUNGARY
I will write:
1. A couple sentences about GDP
2. WHAT WAS THE AVERAGE MONTLY SALARY IN DOLLARS IN EACH ABOVE MENTIONED COUNTRIES
3. BUYING POWER IN TODAY'S DOLLARS IN USA
4. POSSIBLE BUYING POWER IN COMMUNISTIC COUNTRIES (if we assume that prices in communistic countries were 40-50% lower than in USA).
5. PRESENT DAY AVERAGE SALARY
GDP
More about GDP cult: GDP as a false measure of a country's economic output-LINK
Among non-informed persons GDP figures are the most frequent delusional measure of "richness". There are several methods of calculating GDP. Besides the fact that the figures are easily manipulated by playing with the input or methodology, the value of data about GDP is very questionable (even if calculated in the correct way).
There are many various statistics of GDP. According to the most statistics, USA have the greater GDP than all ex communist countries combined. Greatest GDP per capita (per person) among communist countries had Czechoslovakia, while the greatest nominal GDP had Soviet Union. In former Yugoslavia the greatest GDP per capita (per person) had Slovenia (Slovenia has population about 2 million people), while Serbia had a greatest nominal GDP. According to the some estimations, Yugoslavia had the greatest GDP per capita among communist countries, but this opinion was discarded as fantasy after dissolution of Yugoslavia.
AVERAGE SALARIES AND BUYING POWER
Decrease in buying power of the US Dollar
We should take into account inflation rate and decrease in buying power of the dollar. According to the convertors that convert value of dollar in the past to the corresponding values in today’s dollars. 1000 dollars in 1980 had the same buying power as 2797 today's dollars.
I used conventor LINK-Historical Currency Conversions in this analysis; the same results could be get by using any other conventor.
Buying power of the US Dollar in communist countries
We should also take into account that prices were not the same in the USA and in communist countries. According to information I collected, prices of food, clothes and public transport were lower by 50 -100 % in every communist country than in USA, while prices of technical goods and cars were the same.
USA
Salaries in 1980
Average per capita personal yearly income in 1980 was 9 910 dollars.
http://www.infoplease.com/ipa/A0104547.html
This is equivalent to averages of 825 dollars per month.
We should take into account inflation rate and decrease in buying power of the dollar.
According to the Historical Currency Conversions 825 dollars in 1980 had the same buying power as 2308 today's dollars.
Salaries in 1990
Per capita personal yearly income in 1990 was $19,188.
This is equivalent to averages of 1599 per month.
1599 dollars in 1990 had the same buying power as 2885 today's dollars.
Salaries in 2016
U.S. Bureau of Labor Statistics : Median weekly earnings full-time wage and salary workers were $849 in the fourth quarter of 2016.
https://www.bls.gov/news.release/wkyeng.nr0.htm
This is equivalent to averages of 3 396 dollars per month.
Yugoslavia (Slovenia)
Average monthly salary in 1980
According to the information published on website of Slovenian Statistical Office
LINK and US Dollar (USD) - Yugoslav Dinars exchange rates in january 1980 LINK average monthy salary in Slovenia in 1980 was 461 US dollars.
According to Historical Currency Conversions 461 dollars in 1980 had the same buying power as 1289 today's dollars.
Possible buying power in Slovenia could been around 1900 today's dollars.
Salary range : Industrial workers, mostly had average salary, while college-educated workers had a salary above average (in some cases 3 times higher than average salary), especially engineers, managers and high officers of Yugoslav Army.
Depending on education and working position, salary range could be from 1000 today's dollars (low paid workers) to 4000 today's dollars (high paid workers).
Average salary in 1990
Average salary in Slovenia in 1990 year was 5657 dinars or 565 dollars.
According to Historical Currency Conversions 565 dollars in 1990 had the same buying power as 1019 today's dollars. Possible buying power in Slovenia could be around of 1500 today's dollars. Salary range could be from 800 to 3000 today's dollars.
Present day average Slovenian salary
Present day average Slovenian salary is 1092 Euros (1 164 dollars).
Average salary in European Union last year was 1508 euros.
Yugoslavia (Serbia)
Average monthly salary in 1980
Tables with average monthly salaries in Serbia (1979-1980) published on website of Statistical Office of the Republic of Serbia:
LINK
US Dollar (USD) - Yugoslav Dinars exchange rates in January 1980: 1 USD = 19 Yugoslav Dinars LINK
Average monthly salary in Serbia in 1980 was 6 967 Yugoslav Dinars or 366 dollars.
According to the conventor Historical Currency Conversions, 366 dollars in 1980 had the same buying power as 1023 today's dollars in USA.
Possible buying power in Serbia could been around 1500 today's dollars.
Salary range : Depending on education and working position salaries could be from 800 today's dollars (low paid workers) to 3 000 today's dollars (high paid workers).
Average salary in 1990
Average salary in Serbia in 1990 was 4167 din or 416 dollars.
According to Historical Currency Conversions 416 dollars in 1990 had the same buying power as 750 today's dollars. Possible buying power in Serbia could be around 1000 today's dollars. Salary range could be from 500 (low paid workers) to 2000 today's dollars (high paid workers)
Present day average salary
Present day average salary (feb. 2017) is around 500 dollars.
Hungary
Average monthly salary in 1980
Monthly salaries in Hungary (1980) according to official statistics :
http://www.ksh.hu/docs/hun/xstadat/x.../h_qli001.html
In 1980 average salary in Hungary was 4098 forints.
US Dollar (USD) - Hungarian Forint (HUF) exchange rates in 1980
http://arfolyam.iridium.hu/en-GB/USD/1980-01-01
1 USD = 34 forints.
Average Hungarian salary in 1980 was 120 US Dollars.
120 dollars in 1980 had the same buying power as 335 today's dollars in USA.
Possible buying power of 120 USD in Hungary in 1980 in Hungary could be around 420 today's USD.
Salary range could be from 200 (low paid workers) to 800 today's dollars (high paid workers).
Average monthly salary in 1990
Average monthly salary in 1990 was 13 466 HUF or 200 dollars. 200 dollars in 1990 had the same buying power as 360 today's dollars.
Present day average salary (2016)
Present day average salary (2016) is 573 euros (610 dollars).
Poland
Average monthly salary in 1980
Average monthly salary in Poland according to the official statistics (Central Statistical Office of Poland):
LINK
Average Polish salary in 1980 was 6 040 zlots or 41 dollars.
41 dollars in 1980 had the same buying power as 114 today's dollars.
Possible buying power of 50 US Dollars in Poland in 1980 could be around 150 today's dollars.
Depending on education and working position salary range could be from 60 today's dollars (low paid workers) to 300 today's dollars (high paid workers).
Average monthly salary in 1990
Average monthly salary was 1 029 637 zlots or 100 dollars.
100 dollars in 1990 had the same buying power as 180 today's dollars.
Present day average salary (2016)
Present day average salary (2016) : 723 euros (770 dollars).
Czechoslovakia
Average monthly salary in 1980
Monthly salary in Czechoslovakia according to the Czech Statistical Office :
LINK
In 1980 average salary was 2 637 korunas or around 102 US Dollars.
102 dollars in 1980 had the same buying power as 285 today's dollars in USA.
Possible buying power of 102 USD in Czekochoslovakia in 1980 could be around 360 today's USD.
Depending on education and working position salaries range could be from 150 today's dollars (low paid workers) to 600 USD (high paid workers).
Average monthly salary in 1990
Average monthly salary in 1990 was 85 dollars.
85 dollars in 1990 had the same buying power as 153 today's dollars.
Present day average salary (2016) : 793 euros (845 dollars).
SOVIET UNION
In 1980 official exchange rate was 1 Ruble = 0.6 US Dollars.
In 1981 around 50 % Soviet workers earned between 80 and 160 rubles, while other earned less than 80 rubles or more than 160 rubles.
http://www.dtic.mil/dtic/tr/fulltext/u2/a274458.pdf
In 1990 average salaries were between 10 and 20 dollars.
Current average salaries (years 2016-2017) are around 600-700 dollars which is higher than ever in Soviet Union, but prices are also higher.
Data from annual budget surveys conducted by the U.S.S.R. State Committee on Statistics (Goskomstat). Source: http://www.roiw.org/1993/23.pdf
1980
Under 50 rubles (80 dollars) - 7 %
Between 50 and 75 rubles ( between 80 and 120 dollars ) -18 %
Between 75 and 100 rubles (between 120 and 160 dollars ) - 23 %
Between 100 and 125 rubles (between 160 and 200 dollars) - 19 %
Between 125 and 150 rubles (between 200 and 240 dollars) -13 %
Between 150 and 175 rubles (between 240 and 280 dollars) - 8 %
Between 175 and 200 rubles (between 280 and 320 dollars) - 4 %
Between 200 and 250 rubles (between 320 and 400 dollars) - 4 %
Over 250 rubles (over 400 dollars) - 1 %
----
PRICES IN 80s
Prices and salaries according to this source:
http://fishki.net/1319625-nostalgija...ty-v-sssr.html
Color TV - 700 rubles
Portable TV (Russian made) - 450 rubles
Car (Russian made Moskvich 142) - 4987 rubles
Photo Camera (Russian made) - 100 rubles
Salaries
80 rubles - salary of nurse
150 rubles - salary of engineer
300 rubles - salary of high officer
Prices of food in Soviet Union in dollars according to this source:
http://englishrussia.com/2009/03/08/soviet-photos/
Bread 1 kg - 0.30 dollar
Eggs (10 pieces) - 1.66 dollar
Potatos 1 kg - 0.41 dollar
Milk 1 liter - 0, 76 dollar
Sugar 1kg - 1.30 dollar
Chocolate 100 gr - 1, 33 dolar
Prices in USA in 1980
http://guides.slv.vic.gov.au/whatitcost/groceries
Bread 1 pound (0, 4 kg) - 0, 54 dollars (54 cents)
Potatos 1 pound (0, 4kg) - 0, 99 dollar ( 99 cents)
Milk 1 quart (0, 9 litres) - 63 cents (0, 6 dollar)
Sugar 1 pound (0, 4 kg) - 90 cents (0, 9 dollar)
----
Prices of technical goods and cars in 80s
http://www.thepeoplehistory.com/80selectrical.html
Stereo Sound Television: 659 dollars
Portable Color TV - 589 dollars
Audio Video Rack System - 577 dollars
Car Ford Escort - 5 189 dollars
Car Pontiac Sunbird - 5 164 dollars
Car Toyota Celica - 5 964 dollars
Car Chevrolet Cavalier - 7 171 dollars
Reply With Quote
Originally Posted by Danielion
Bookmarks