Holland, 1951 = 1
Figure 12: Inflation plotted against the real wage
Holland, 1951 = 1
Using the data for our analysis
We now use the data for our analysis. There are four combinations of gross/net and real/nominal. This results into Figure 13. ‘Subsistence’ is always measured as a net term, and ‘minimum wage’ as a gross term. For Holland, we find that real subsistence has risen about 4-fold since 1951, and the nominal minimum wage more than 30-fold. The computed nominal minimum wage relates well to the factual 2002 minimum wage. Not only inflation accounts for the rise, but also an increased tax burden (that encounters inflation again).
Figure 13: Different indices at the minimum [48]
Holland, 1951 = 1
