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> Interest compounds geometrically and wages grow linearly. That doesn't seem right -- wages should grow with inflation. Maybe there's a difference between th
by seieste 7y ago
> 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 7y agoInflation 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.