Originally Posted by
Excargodog
Ok, so we negotiate a new CBA with the prospect that there will be a 5% inflation rate. Inflation COMPOUNDS ANNUALLY, meaning at the end of year one we’ll need another 5%, then year two 105% of THAT 105%, then at year three, 105% of that (105%x105%) just to stay even. We need damn near 128% raise every five years (assuming we actually GET a new CBA every five years) and at that we are only running in place.
And reward debt? SERIOUSLY? Mortgage rates averaged 16.63% in 1981. Good luck going in debt at that rate.
And there 3ish now with highly inflated prices. What’s your point? I had a 6% mortgage with a normal middle class house valuation. That’s what we’re trying to get back to.