How Inflation Affects Our Pay
Some people say, "the rich gets richer and the poor gets poorer." If we look at the trend of minimum wage alone, we can see that there is some truth to that statement.
Inflation is calculated using the Consumer Price Index (CPI) which is basically a list of the average price of basic needs across the United States. If the price of basic needs are increasing faster then our increase in income, then eventually, we won't be able to afford some of our basic needs! Believe it or not, that is exactly what is happening NOW! Therefore, if your income hasn't changed much in the last few years, its almost as if you are receiving a pay deduction.
Knowing the rate of inflation and how it's calculated is an important concept that should be taught at all ages and/or grade levels. This knowledge should give us much more bargaining power when negotiating wages, salaries, and pay increases. Math is Power!