3 ms·

I got a 41% raise this year at my annual review, without a promo. (big tech sde)

by xxpor 5y ago

belter 5y ago
You lost purchasing power...
- xxpor 5y ago
  Are you trying to say inflation was over 41% last year?
  - belter 5y ago
    Dont get me wrong, I am happy for you :-) Assuming you don't get a salary raise every year, and if you do, also good for you :-) but the critical factor here is, your purchasing basket of course and the percentage from each item, and of course the rate of inflation on each item. For example, Energy Cummulative inflation is at 32% just for the last 12 months. If you did not get a raise in the last 3 years, then with food at 12% every twelve months I am not far from the estimate. Now food is normally not a big percentage of a household costs but for example housing, as in rent for persons who rent and don't have a mortgage. If a big percentage of your costs are housing and you had to move, or for example will have to move in the next 12 months, you might find housing costs like rent on a reasonable place, increased more than that. "Renters across US face sharp increases – averaging up to 40% in some cities" https://www.theguardian.com/us-news/2022/feb/16/renters-rent-increases-us-lease https://www.theguardian.com/us-news/2022/feb/16/renters-rent...
    - asdfasgasdgasdg 5y ago
      Can you share your source for the energy cumulative inflation number? I'm looking at "urban consumers all items in us cities average" on the st louis fed website and it's giving me 265->290, which is a fair bit short of 32%.
      - belter 5y ago
        US Example "The energy index rose 32.0 percent over the last year, and the food index increased 8.8 percent, the largest 12-month increase since the period ending May 1981." https://www.bls.gov/news.release/pdf/cpi.pdf https://www.bls.gov/news.release/pdf/cpi.pdf An example form the Netherlands last 12 months "The statistics office also highlights rising energy and fuel prices, revealing that gas prices increased by 53 percent and electricity prices by 74,9 percent between November 2020 and November 2021." https://www.iamexpat.nl/expat-info/dutch-expat-news/cbs-rising-energy-prices-lead-highest-inflation-level-40-years https://www.iamexpat.nl/expat-info/dutch-expat-news/cbs-risi...
        asdfasgasdgasdg 5y ago
        Oh, I see. You're just citing the slices that have grown by the most, and therefore concluding that a 41% raise is a loss of purchasing power. This is not a valid method to compute purchasing power, nor a reasonable basis for asserting that someone who got a 41% raise in one year lost purchasing power.
        belter 5y ago
        Well it depends on how much each of the slices is part of the overall basket. As you probably seen from one of the references, if rent costs increased 40% in most US cities and that represent a major part of a household costs, the fact food who is normally a small part of household cost "only" increased 8% is of little consolation. Of course the comment was made without understanding the individual household scenario of xxpor. But the overall argument that, what would normally be considered a very high salary increase, means for some households nowadays, a real loss of purchasing power, I would argue, it still stands.
        asdfasgasdgasdg 5y ago
        The baseline belief would be that their cost mix is about the average, which is up a little more than ten percent. But you flatly asserted that they had lost purchasing power. This is unlikely. You should not make such sweeping statements without first identifying some rational basis for them.
    - xxpor 5y ago
      I have a fixed rate mortgage and an all electric house, including an electric vehicle. That electricity is ~95% from hydropower. The only real inflation I've seen is in food (which is a trivial part of my budget), electronics, and "house services" like electricians or plumbers, which I 99% DIY anyway.
outside1234 5y ago
Can you say which one? Asking for a friend that's me.

I got a 41% raise this year at my annual review, without a promo. (big tech sde)

by xxpor 5y ago

I got a 41% raise this year at my annual review, without a promo. (big tech sde)

belter 5y ago

You lost purchasing power...

xxpor 5y ago
Are you trying to say inflation was over 41% last year?
- belter 5y ago
  Dont get me wrong, I am happy for you :-) Assuming you don't get a salary raise every year, and if you do, also good for you :-) but the critical factor here is, your purchasing basket of course and the percentage from each item, and of course the rate of inflation on each item. For example, Energy Cummulative inflation is at 32% just for the last 12 months. If you did not get a raise in the last 3 years, then with food at 12% every twelve months I am not far from the estimate. Now food is normally not a big percentage of a household costs but for example housing, as in rent for persons who rent and don't have a mortgage. If a big percentage of your costs are housing and you had to move, or for example will have to move in the next 12 months, you might find housing costs like rent on a reasonable place, increased more than that. "Renters across US face sharp increases – averaging up to 40% in some cities" https://www.theguardian.com/us-news/2022/feb/16/renters-rent-increases-us-lease https://www.theguardian.com/us-news/2022/feb/16/renters-rent...
  - asdfasgasdgasdg 5y ago
    Can you share your source for the energy cumulative inflation number? I'm looking at "urban consumers all items in us cities average" on the st louis fed website and it's giving me 265->290, which is a fair bit short of 32%.
    - belter 5y ago
      US Example "The energy index rose 32.0 percent over the last year, and the food index increased 8.8 percent, the largest 12-month increase since the period ending May 1981." https://www.bls.gov/news.release/pdf/cpi.pdf https://www.bls.gov/news.release/pdf/cpi.pdf An example form the Netherlands last 12 months "The statistics office also highlights rising energy and fuel prices, revealing that gas prices increased by 53 percent and electricity prices by 74,9 percent between November 2020 and November 2021." https://www.iamexpat.nl/expat-info/dutch-expat-news/cbs-rising-energy-prices-lead-highest-inflation-level-40-years https://www.iamexpat.nl/expat-info/dutch-expat-news/cbs-risi...
      - asdfasgasdgasdg 5y ago
        Oh, I see. You're just citing the slices that have grown by the most, and therefore concluding that a 41% raise is a loss of purchasing power. This is not a valid method to compute purchasing power, nor a reasonable basis for asserting that someone who got a 41% raise in one year lost purchasing power.
        belter 5y ago
        Well it depends on how much each of the slices is part of the overall basket. As you probably seen from one of the references, if rent costs increased 40% in most US cities and that represent a major part of a household costs, the fact food who is normally a small part of household cost "only" increased 8% is of little consolation. Of course the comment was made without understanding the individual household scenario of xxpor. But the overall argument that, what would normally be considered a very high salary increase, means for some households nowadays, a real loss of purchasing power, I would argue, it still stands.
        asdfasgasdgasdg 5y ago
        The baseline belief would be that their cost mix is about the average, which is up a little more than ten percent. But you flatly asserted that they had lost purchasing power. This is unlikely. You should not make such sweeping statements without first identifying some rational basis for them.
  - xxpor 5y ago
    I have a fixed rate mortgage and an all electric house, including an electric vehicle. That electricity is ~95% from hydropower. The only real inflation I've seen is in food (which is a trivial part of my budget), electronics, and "house services" like electricians or plumbers, which I 99% DIY anyway.

outside1234 5y ago

Can you say which one? Asking for a friend that's me.