[iggy_oi]

Originally Posted by Zarley

I guess I'll have to show my work then, unfortunately CP does not support spreadsheet functionality.

Spoiler!

Year / Inflation Rate / Inflated Dollar / Minimum Wage
1965 / 2.40% / $1.00 / $1.00
1966 / 4.20% / $1.04 / $1.00
1967 / 3.40% / $1.08 / $1.15
1968 / 3.90% / $1.12 / $1.25
1969 / 4.80% / $1.17 / $1.25
1970 / 3.00% / $1.21 / $1.55
1971 / 3.00% / $1.24 / $1.55
1972 / 4.80% / $1.30 / $1.55
1973 / 7.80% / $1.41 / $1.90
1974 / 11.00% / $1.56 / $2.00
1975 / 10.70% / $1.73 / $2.50
1976 / 7.20% / $1.85 / $2.75
1977 / 8.00% / $2.00 / $3.00
1978 / 8.90% / $2.18 / $3.00
1979 / 9.30% / $2.38 / $3.00
1980 / 10.00% / $2.62 / $3.50
1981 / 12.50% / $2.95 / $3.80
1982 / 10.90% / $3.27 / $3.80
1983 / 5.80% / $3.46 / $3.80
1984 / 4.30% / $3.61 / $3.80
1985 / 4.00% / $3.75 / $3.80
1986 / 4.10% / $3.90 / $3.80
1987 / 4.40% / $4.08 / $3.80
1988 / 3.90% / $4.23 / $4.50
1989 / 5.10% / $4.45 / $4.50
1990 / 4.80% / $4.66 / $4.50
1991 / 5.60% / $4.93 / $4.50
1992 / 1.40% / $4.99 / $5.00
1993 / 1.90% / $5.09 / $5.00
1994 / 0.10% / $5.09 / $5.00
1995 / 2.20% / $5.21 / $5.00
1996 / 1.50% / $5.28 / $5.00
1997 / 1.70% / $5.37 / $5.00
1998 / 1.00% / $5.43 / $5.40
1999 / 1.80% / $5.53 / $5.90
2000 / 2.70% / $5.67 / $5.90
2001 / 2.50% / $5.82 / $5.90
2002 / 2.20% / $5.94 / $5.90
2003 / 2.80% / $6.11 / $5.90
2004 / 1.80% / $6.22 / $5.90
2005 / 2.20% / $6.36 / $7.00
2006 / 2.00% / $6.49 / $7.00
2007 / 2.20% / $6.63 / $8.00
2008 / 2.30% / $6.78 / $8.40
2009 / 0.30% / $6.80 / $8.80
2010 / 1.80% / $6.92 / $8.80
2011 / 2.90% / $7.12 / $9.40
2012 / 1.50% / $7.23 / $9.75
2013 / 0.90% / $7.30 / $9.95

PVinflation = $(1.00)
FVinflation = $7.30
N = 48
I/Yinflation = 4.23%

PVminwage = $(1.00)
FVminwage = $9.95
N = 48
I/Yminwage = 4.90%

The minimum wage in 2014 would have been lower if it would have been increased annually with the rate of inflation since its inception. This is an objective fact. In fact, there were only 14 years where the minimum wage did not outpace inflation.

In 1965 the minimum wage was $1/hour and inflation during that same year was 2.4%, that means to keep pace with inflation the minimum wage would need to be increased to $1.024 for 1966. Now clearly our currency doesn’t allow for $1.024 to be paid without rounding, which you’ve done in your calculation. The problem is that $1.02 isn’t a 2.4% increase on $1, it is only a 2% increase. While it is necessary to do the rounding so that the rate of pay can actually be paid in our currency, you still need to include the amount that was lost from rounding when making the subsequent annual calculations otherwise those gains and the inflation which would subsequently also be applied to those gains will be lost permanently. Those numbers may seem inconsequential, a quarter of a penny here and there doesn’t seem like much but over time it adds up, especially when inflation is applied to those gains as well. If you recalculate your figures without rounding, by the end of 2014(2.6% CPI that year) you end up close to $11/hour. That 10% difference in pay may not have a big impact on the quality of life or economic mobility for someone earning over $100k, but the same can’t be said for someone earning minimum wage.

At the market minimum wage level.

If the market rate doesn’t provide enough for the employee to cover the costs of basic needs, do you still not consider it to be exploitive?

Yes, greed plays a factor in certain cases. There are a certain percentage of greedy employees and a certain percentage of greedy employees.

I’m going to give you the benefit of the doubt and assume you meant to type “employers” in one of the places where you wrote “employees”

Keep in mind that firms are not inherently bad nor good, they're simply a reflection of their managers and directors. In my experience, the majority of successful firms act with the best interests of their employees taken into account.

Contrary to popular belief on this board I don’t actually think all employers are bad. It’s actually refreshing to hear someone say that in their experience the majority of employers act with the best interests of their employees. In fact I would prefer to hear it more often, which is why I advocate for workers rights. If you don’t mind me asking, has the majority of your experience been working in lower paying/manual labour environments or higher paying/corporate environments?