Originally Posted by
BoilerUP
2000-2020 CPI averaged 2.1%. In that 21 year time frame, CPI has exceeded 3% only five times.
2021 is gonna be a big one, no doubt...but while I've never bought the "transitory" line from the Fed I think there's scant reason to believe these kinds of sharp increases will continue at the same rate for years on end into the future.
In which case nobody should object to putting CPI adjustments in the contracts then. The social security and military retirees just got a 5.9% increase for 2022 due to the current CPI. Most major CBAs had a 2-3% increase for the year. They went backwards two to three years worth, doesn’t take many years like that to make a 5 year CBA a losing proposition.
For every 100,000 in wages you earn today, five years at 2% will leave you with only $90,578. At 3% for 5 years that would go down to $86,260 in value.
Do the math yourself.