1 – In 1933, the Roosevelt administration made the first attempt at establishing a national minimum wage, when a $0.25 per hour standard was set as part of the National Industrial Recovery Act. However, in the 1935 court case Schechter Poultry Corp. v. United States (295 U.S. 495), the US Supreme Court declared the act unconstitutional, and the minimum wage was abolished. In 1938, the minimum wage was re-established pursuant to the Fair Labor Standards Act, once again at $0.25 per hour.
Read about current minimum wages:
http://www.ncsl.org/research/labor-and-employment/state-minimum-wage-chart.aspx
The New York State minimum wage increased on December 31, 2016. In New York City, it is $10.50 per hour for businesses with 10 or fewer employees.
Using the Federal Reserve Bank of Minneapolis' website and using the CPI numbers given, how much would a worker earning minimum wages in 1938 make today in 2018? (two decimals.)
2 – You are given the following information: (the numbers are made up)
Year CPI (2007=100)
2012 130.2
2013 143.3
2014 139.5
a. explain the meaning of these numbers.
b. Which is the base year?
c. Calculate the rate of inflation between 2012-2013 and between 2013 - 2014. (Two decimals)
3 - Use the real data posted by Federal Reserve Bank of Minneapolis to calculate:
You got $5,000 from your grandmother to purchase some goods and services in 2018. How much money would you have needed in 1960 to buy the same amount of goods and services? (Two decimals.)
4- An often repeated story around the dinner table in your house by your uncle is, that when he started working in 1975, his first annual pay contract was $8,000/year. The starting salary with your major in 2018 was $67,000. Your uncle said that you will make 8 times as much as he did when he started working. Is that true? Explain. One word answer is not enough.
(CPI data link to Federal Reserve Bank of Minneapolis)