> Annual wages are about 15% higher today compared to 1971 in real terms. Since ... | Hacker News

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chipdart on March 23, 2024 | parent | context | favorite | on: Why the 2% inflation target? (2023)

> Annual wages are about 15% higher today compared to 1971 in real terms.

Since 1971, the cumulative inflation rate was around 700%, with an average annual inflation being well over 3%.

So while wages increased 15%, the price of everything else around us increased over 700%.

erko_ on March 23, 2024 [–]

The 15% increase in wages is in real terms, meaning it's already been adjusted with inflation. Think of it this way: in nominal terms, wage increase would be 715%.

Rexxar on March 23, 2024 | [–]

+15% is x1.15, +700% is x8. 1.15x8 is 9.2 so the number you want is +820%.

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