2.1% doubles wages every 33 years. Sustained, a wage growth of 2.1% increases wages by 8X in a century, enough to raise the median wage of $32,154 in 2000 to $256,927 by 2100.
Does that sound outlandish? It's not. Wages grew about 8X in the 20th century. But more impressive than the increase in wages was the change in what you were able to buy over the course of the last century. At any price. I'm not sure how you would factor that into a calculation of wage growth. And the addition of outrageously cool things to buy is likely to continue. This new century has already given you new products like personal genetic analysis and a ticket for space travel.
Here is a partial list of things that you could buy in 2000 that you could not buy in 1900. A surprising number of them are quite affordable. Any one of these would be deserving of a post that explores just what it means. (One day of travel would get you to the other side of the globe? For the average person in 1900 - very, very few had cars - a day's travel meant going into town and back.) Imagine what extraordinary things a person in 2100 with an income of a quarter of a million will be able to buy for Christmas presents.
Radio
A photocopy
Ticket to a movie
A video
TV
Airplane ticket. To anywhere
Airplane
Helicopter
Rocket
Anything plastic
Air conditioner
Teabag
Microwave oven
Electric refrigerator
Safety razor
Crossword puzzle
Bra
Vibrator
Rocket
Penicillin
Antibiotics
Antibiotics
Hepatitis-B vaccine
Polio vaccine
Insulin
The Pill
LSD
Bubble gum
Nylons
Laser
Velcro
Credit card
Mutual fund share
A pacemaker
Valium
Viagra
Prozac
Computer
Personal computer
Smartphone
Video game
Email account
Website
Video conference. With anyone. From anywhere
GPS
No comments:
Post a Comment