Your grandfather made $5/hour nominal wage in 1974. likewise, your father made $9/hour in 1994, and you $17/hour today. if inflation is constant at + 3.5% per year, or + 41% per decade, who had the highest real wage?

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Gary

15 August, 16:23

Your grandfather made $5/hour nominal wage in 1974. likewise, your father made $9/hour in 1994, and you $17/hour today. if inflation is constant at + 3.5% per year, or + 41% per decade, who had the highest real wage?

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Steven Woods · Answer 1

The $5 per hour in 1974 would be equal to $21.82 today in 2017, compared to $19.83 for the $9 in 1994 now in 2017, and all compared to the $17 today. So the higest real wage would be that of the grandfather, taking into account the 41% per decade or 3.5% per year inflation.