Wage Inflation is a B*tch
I came across this vintage math in my mom's 1970s-era hitchhiking journals and after staring at it for a few minutes, I realized this was (someone) adding up the money they could make. Apparently it involved a lot of orange picking and, uh, similar odd jobs.
Anyway... as you can clearly see (and this would be 1974 or 1975), we're talking $1.80 an hour.
Now what you should do is check out this (April 2000) Cleveland Fed paper, Does Wage Inflation Cause Price Inflation?
Earlier in the current expansion, some considered a low unemployment rate (below 6.5 percent) a harbinger of rising inflation. The commonly held view was that if the aggregate demand for goods and services caused unemployment to fall below some “natural” rate, inflation would accelerate.
What this means to me in simple terms is that part of the Fed's job is to release a reasonable amount of money to meet the demand for said money. Of course, they can never put in just a little bit and have to shove it in all the way and get a bunch splattered everywhere.
I have no idea what orange pickers are making these days but I'm pretty sure it's more than $1.80.
Then again, I could be wrong and this math has nothing to do with money.