More than 10 years ago GusDur raised public employees salary 100 percent. Apparently with 10 percent inflation each year, after more than 10 years the actual value of public employee salary is lower than 10 years ago before the salary was increased.
Let's see this illustration,
since the inflasion is 10 percent per year, so each year the actual value of the salary is merely 90 percent of the previous year. So in 10 years the actual become
a is amount of salary before Gusdur
b is salary after Gusdur raise it
c is current value of salary.
b = 2 x a
salary value of one year after raised
s1 = 0.9 x b
salary value of two years after raised
s1 = 0.9 x 0.9 x b
salary value of n years after raised
s1 = 0.9 x ... x 0.9 x b = 0.9 ^n x b
so after 10 years
c = 0.9 ^10 x b = 0.35 x b
since a = 0.5 x b thus c is less than a,
thus it is lower than actual value before GusDur raised the salary. To conclude it is not better if it not worse than the value in new order era.
Let's see this illustration,
since the inflasion is 10 percent per year, so each year the actual value of the salary is merely 90 percent of the previous year. So in 10 years the actual become
a is amount of salary before Gusdur
b is salary after Gusdur raise it
c is current value of salary.
b = 2 x a
salary value of one year after raised
s1 = 0.9 x b
salary value of two years after raised
s1 = 0.9 x 0.9 x b
salary value of n years after raised
s1 = 0.9 x ... x 0.9 x b = 0.9 ^n x b
so after 10 years
c = 0.9 ^10 x b = 0.35 x b
since a = 0.5 x b thus c is less than a,
thus it is lower than actual value before GusDur raised the salary. To conclude it is not better if it not worse than the value in new order era.
It was pretty unproductive last month! There were three potential entries that in very slow progress. Or is it a sign that I was doing something more productive? :D
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