Wages

Over the past 40 years wages have not kept up with inflation eventhough inflation has been at record low levels averaging 3%. An example is a fast food place. Companies can pay more and just raise prices. In 1986 a Big Mac cost $1.60 and today the cost is $5.69. That is annual increase of 8%. In 1986 the average wage at McDonald's was $3.35 and today it is $13.85 which is an annual increase of 7.1%. During this period inflation was 2.5%. In 1986 the employee had to work 126 minutes to buy a Big Mac and today the employee has to work 147 minutes.