Author Topic: What you need to get a Tim Horton's  (Read 2011 times)

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Offline wilber

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Re: What you need to get a Tim Horton's
« Reply #180 on: January 22, 2018, 12:16:15 pm »
I am saying that after 5 years of 1.5% inflation the wage that one would expect to receive based on inflation is 7.7%. That should be the end of the calculation need to do a sanity check on the current raises. Now you seem to think that people should get more than inflation to "compensate" wages lost in the past but you can't calculate any such number unless you set other parameters such as period of time which the catch up should occur. i.e. 5 years from now they should have made the same as if they had gotten 1.5% per for 10 years. I have  not done the math but I doubt it would change much. More importantly, the last increases were way above inflation too so you would need to take that into account too. Cherry picking a 5 year interval without looking at where the base was at the start is not reasonable.

I'll do the math for you.

Lets say someone was making $20,000 a year and gets 1.5% increases every year for 5 years. 1st year=$20,000, 2nd year = $20,320.30, 3rd year = 20,625.10, 4th year = 20,934.48, 5th year = $21,248.50. Total income = $103,128.38

Someone making $20,000 who gets no increases for the first four years and 5% on the fifth. First four years $80,000. Fifth year $21,000. Total income $101,000 plus this person is making $248 less in the fifth year than the person who had yearly increases. This is money that will never be recovered unless people are given occasional raises that exceed the inflation rate over the time they never received raises.


I can only assume that you believe people on minimum wage are over paid.
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