jeffw@lemmy.world to politics @lemmy.world · 3 months agoIt has now been 15 years since the federal minimum wage rose to $7.25www.npr.orgexternal-linkmessage-square142fedilinkarrow-up1733arrow-down18
arrow-up1725arrow-down1external-linkIt has now been 15 years since the federal minimum wage rose to $7.25www.npr.orgjeffw@lemmy.world to politics @lemmy.world · 3 months agomessage-square142fedilink
minus-squareCataphract@lemmy.mllinkfedilinkarrow-up4arrow-down1·3 months agowith 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.
minus-squareiknowitwheniseeit@lemmynsfw.comlinkfedilinkarrow-up4·edit-23 months agoThat’s not how compound increases are measured. We can use the compound interest formula for this. A = P * (1 + r) ^ t A is the final amount. P is the starting amount (the principal). r is the rate (as a proportion, so 50% would be 0.5). t is the time. To 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 = r So 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 = 13.63 So that’s a $13.63 minimum wage.
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.
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.