with context, that’s a 2800% increase in 80 years, a 35% increase per year average. 15 years = 525% increase lost, final value would be 45 per hour. I have no idea if this is right and don’t condone this math for any reference.
The math is not right. Percentages don’t multiply like that.
A change from 0.25 to 7.25 over 71 years means an annual increase of about 5%. That 5% annual change, starting with $7.25 15 years ago, would take us to around $15 today.
And in 80 years it has risen $7.00 from its 25¢/hour origins.
We need a new word for dignity because the one we are using is doing it wrong.
with context, that’s a 2800% increase in 80 years, a 35% increase per year average. 15 years = 525% increase lost, final value would be 45 per hour. I have no idea if this is right and don’t condone this math for any reference.
The math is not right. Percentages don’t multiply like that.
A change from 0.25 to 7.25 over 71 years means an annual increase of about 5%. That 5% annual change, starting with $7.25 15 years ago, would take us to around $15 today.
That’s not how compound increases are measured.
We can use the compound interest formula for this.
A = P * (1 + r) ^ tTo figure out the annual increase for the whole time we can plug in what we know and solve for what we don’t:
7.25 = 0.25 * (1+r) ^ 80 29 = (1+r) ^ 80 years 1.043 = 1+r 0.043 = rSo that’s about 4.3% increase per year over the 80 years.
Now we can see what we would have as minimum wage if it had continued over the past 15 years:
A = 7.25 * (1+0.043) ^ 15 A = 7.25 * 1.043 ^ 15 A = 7.25 * 1.88 A = 13.63So that’s a $13.63 minimum wage.