Wednesday, April 21, 2010

Two lines for a decade

The following graph contains two lines tracked for almost a decade.  Click the image to enlarge.  The two lines are:

  1. The Consumer Price Index
  2. Six-month moving average of my net pay

Pay versus CPI

Both series are set equal to 100 in October 2000 and changes are relative to that level.  I won’t indicate which line is which but you can have a good guess!

Of course this is a bit of a moot comparison for a multitude of reasons and it really is just a graph with two lines rather than revealing anything significant.  Here are just two.

  1. The CPI is a price index and not a cost-of-living index.
  2. Changes in pay should be related to changes in productivity.

And there are many many more.  Still I thought it was interesting for what it is worth.

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