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> If there is 120V AC between the two wires, doesn't this mean that there has to be at least 60V AC potential between at least one of the wires and earth ground?

One specific wire is “safe.” One wire (neutral) is at 0V, and the other wire (hot) is at 120V. So it is “safe” to touch the neutral wire. In practice, there are various fault conditions which will cause the neutral wire to become unsafe, which is why we now have a separate earth ground.



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