Shot in the back over a matter of $80 :: Part 2
A Deep Dive into Pop Culture Economics
Check out Part 1
The Caliber of the Crime
Before we go any further, let’s be clear in this scenario: Doc dies. Marty has not yet come back to save him. He gets shot, he’s buried, they put a tombstone over him.
At this point, you might be thinking, Tannen murdered Doc. It’s murder. Who cares why. Well, the answer to that is — this is an Economics blog and not a legal or moral blog so we’re talking about the economic stakes triggering the crime.
If you care enough, Hill Valley is in California so we would use California Common Law as guide for murder charges and California probate law for his assets.
Inflation and Value Pricing
Some of this is simple to figure out with any online inflation calculator and other parts, we need to make some assumptions
The Whisky
$5 in 1885 is $152.72 in 2022 dollars
A solid scotch by any measure.
It’s harder to judge how difficult obtaining whisky would have been so we’ll assume there was not a scarcity premium on the whisky while they were out west.
I’m also going out on a limb and say Mad Dog was likely drinking from that $152 whisky while riding his horse. That means there’s a whole other angle where you could argue Tannen was drinking and driving so the whole thing is his fault. However, since DUI laws did not exist, I guess he’s just a drunk guy on a horse.
The Horse
$75 in 1885 is worth $2,290.79 today
Unlike a thoroughbred race horse, which is really more an investment than a depreciating transportation asset, a horse your kid might ride around on at a farm today would run you about $3900 .
Horses in 1885 were the main mode of transportation (Steam engines aside) Today’s main mode of transportation (a car) would run you far more than $2290.79 obviously so the question becomes can this still make sense as an equivalent of today?
In today’s market, a mode of transportation in $2300 range is something between a high end bicycle or a moped.
Now, we can see how value based pricing seeps in and can be applied when it comes to transportation efficiency.
A horse was not a like new 2023 Mustang GT because the horse was only as good as horse. (of course) The work load of feeding and caring for the horse or the speed and duration with which a horse can move you around are all much closer to a bicycle or a Moped. So in this lens, the numbers actually add up!
Horse and Whisky Affordability
Nominal average wage in 1885 is $585 or in 2022 about $18,000 / year using the same inflation calculator. For point of reference, the Federal poverty line in 2022 for a single man is $13,590/year and federal minimum wage is $7.25 an hour in some states. Let’s assume Mad Dog is stealing his way through life to hit that nominal average wage equivalent of $18,000 / year.
$80 in 1885 is worth $2,443.51 today. Almost 2 months pay for the average worker ( 18000 / 12 = $1500 per month )
Trader Dads Hot Take:
Let’s be fair, if I’m riding my moped home and I get a flat tire immediately after my Moped Repairman told me he FIXED the flat tire, and it causes me to drop and smash the $152 bottle of whisky I had just bought…..I’d be pissed too. Especially on 18k/year! I’m not saying I’d “shoot-to-kill” my Moped repairman in the back like Mad Dog Tannen did but I’m just saying, it’s ok to be grumpy for poor workmanship by Doc.
This is why we have the Better Business Bureau. And Yelp for that matter.
Other Miscellaneous Economics of it all
Tombstone costs
It’s going to run about $2000 in 2022 dollars for something simple.
What happens to his blacksmith barn?
I don’t think Doc would have bothered to make a will for his 1885 property. Remember, he only met Clara a week ago, so he would not likely have had the time to set one up to give her the barn and blacksmith business. The barn and everything in it would go to the State of California legally but more likely would sit there collecting dust. Thieves would break in to steal all his reasonably valuable tools and inventions. They would then sell off the metal and tools for whatever they were worth.
Look for Part 3 next week where we discuss the town’s reaction to Doc’s death and what happens to Mad Dog