Reaganomics is what happened to our economy

[hfojvt]

47. blue loses after 1968

because in 1968 the minimum wage was raised to $1.60, the highest point ever, historically. In terms of 2011 dollars, that wage was $10.17 an hour.

But then Nixon was elected. And the minimum wage was NOT increased again until 1974.

In 2011 dollars, it looks like this

1968 - $10.17
1970 - $9.13 (for some reason, I do not have 1969 in my spreadsheet)
1971 - $8.75
1972 - $8.48
1973 - $7.97
1974 - $8.98

The income of the bottom 20% probably depends heavily on the minimum wage. Hence the drop after the peak in 1968.

But I don't think the reference point changes anything substantial. A year has to be picked, and they chose that one. And they did more or less gain equally. If 1947 was 60% for the bottom 20% and for the median and for the 95th percentile and they all generally saw their income grow by 40% up to 1973.

Again, you pick a baseline for inflation and changing that baseline does not change the rates. For example http://data.bls.gov/cgi-bin/cpicalc.pl

Baseline 1975 = 100

1975 - 100
1980 - 153.16
1985 - 200 (okay that was weird)

inflation rate 1975-1980 = 53.16%
inflation rate 1975-1985 = 100%
inflation rate 1980-1985 = 30.58%

Baseline 1980 = 100
1975 = 65.29
1980 = 100
1985 = 130.58

inflation rate 1975-1980 = 53.16 (100-65.29)/65.29
inflation rate 1975-1985 = 100% (130.58-65.29)/65.29
inflation rate 1980-1985 = 30.58%

baseline 1960 = 100
1975 = 181.76
1980 = 278.38
1985 = 363.51

inflation rate 1975-1980 = 53.16 (278.38-181.76)/181.76

But what do I know. I am not very good at math.