> Interest compounds geometrically and wages grow linearly. That doesn't seem ri... | Hacker News

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		seieste on Oct 2, 2019 \| parent \| context \| favorite \| on: How We Justified Piling Debt on Poor Customers > Interest compounds geometrically and wages grow linearly. That doesn't seem right -- wages should grow with inflation. Maybe there's a difference between the growth rates of the two, but I don't see how wAge grows linearly.

Retric on Oct 2, 2019 [–]

Inflation is not a net change in pay. If real wages grew at say 1% compounded annually, over the last 2,000 years salaries would have increased by over 400,000,000x.

In the end, wage increases are far from geometric growth.

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