My 34,682% ROI on Potatoes
Joyce Park stashed this in Economics
On a per-hour basis, he did better growing potatoes than driving for Uber!
The economics of potatoes seems particularly good:
Frankly I’m amazed by the abundance of food you get from planting a single potato. You plant one and get not only two or five but up to twenty potatoes from that single potato. In just one season.
I like this analysis:
This means my $150 net profit is equivalent to earning $16.66 per hour. But again, this is tax-free earnings because I’m going to eat it all and in this day and age we don’t have to pay taxes on the food we grow for personal consumption (although this hasn’t always been the case, in the old days you were forced to give a big chunk of your harvest to the church or to the state).
But if you’re an employee you have to pay tax on your money before you can go and buy potatoes, which means if you pay 30% tax you’ll have to earn $23.8 per hour to get an equivalent profit.
For me though, the government takes pretty much 50% of my earnings here in Sweden, which means my earnings from growing potatoes is the equivalent of earning $33.3 per hour at a job.
What does this mean?
It means that if you earn less than $23.8 per hour, or in my case $33.3 per hour, you’ll save money by growing your own potatoes rather than spending the time at work.
But of course you don’t have to choose one or the other. You can keep your full time job but spend a few hours per year growing potatoes to lower your food bill and increase your food resiliency. It’s a no-brainer for me.