- Apr 10, 2013
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- #81
Really a minimum wage of $22.62, even the suggested $15.00 an hour for fast food employees would make eating at McDonald as pricey as eating at Ruth's Chris Steakhouse. I believe that Pop23 made an excellent point, the blow back from more skilled workers demanding more money would set off a a major labor problem for all companies.
Let's talk about the real problem, the worth of the US Dollar:
The computations in the calculator are based on the annual Consumer Price Indices (CPI) from 1913 through 2012, which are published by the U.S. Bureau of Labor Statistics.
For the salary example, the conversion of the 2007 salary to 1970 dollars is done using the following procedure:
2007 Salary in 1970 dollars = 2007 salary * (1970 CPI / 2007 CPI)
2007 Salary in 1970 dollars = 200000 * (38.8 / 207.3)
2007 Salary in 1970 dollars = $37,433.67
The conversion of the 1970 salary to 2007 dollars is done using the following procedure:
1970 Salary in 2007 dollars = 1970 salary * (2007 CPI / 1970 CPI)
1970 Salary in 2007 dollars = 50000 * (207.3 / 38.8)
1970 Salary in 2007 dollars = $267,139.18
Purchasing Power Calculator - See How Inflation Erodes Your Purchasing Power
If you want to use CPI as a factor
Deadly Flaws In Major Market Indicators