Am I earning more today than I did in 1976?

Question

In 1976 as a secretary I earned $4.85 per hour, 40 hours per week.
In 2006 as a manager I earn $15.44 per hour, 40 hours per week.
Adjusting for inflation, am I really earning anymore money now than I did back in 1976?

Answer 1

Based on the numbers above, your per hourly wage is increasing at just under 4% per year compounded for the 30 year period. The inflation rate varies year to year but the annual consumer price index has ranged from 1.6% to 5.4% over the past 20 years.

The good news? In only 4 of the past 20 years has inflation (or the CPI) been greater than 4% so you are earning a bit more than you did in 1976 (adjusted for inflation).

Answer 2

Unfortunately, You have actually lost ground. In order to keep pace with inflation (consumer prices) you you should be earning 16.65 at the end of 2005. So current inflation is running about 3% so by the end of 2006 it should be 17.15. The only way to get ahead is to go into business for yourself!

Answer 3

No, it looks like you're losing ground!!

The web site I used does not include 2006 yet.
However, $4.85 in 1976 was worth $16.65 in 2005. So you're not earning more.

Answer 4

No it doesn't look like it because everything was cheaper back in 1976. I suggest trying an on line job on the side. You can make your own hours and be your own boss. And there is no limit to what you can make as long as your dedicated.

Answer 5

Theoretically, your buying power is less in 2006 than in 1976

Answer 6

Yes and no. With the understanding of inflation, cost of living raises, medical benefits, etc., the answer is no. On the other hand, you made it to management. Management IS a higher wage bracket than the rest of the people working directly under your command.