Thursday, March 27, 2014

Minimum wage, inflation, and personal experience

My first wage job that I remember was at Saywell Drug in Cleveland, Ohio.  I probably started in the summer of 1951 after I quit my paper route.  I started at fifty cents an hour.  This was a low-skill entry job.  I was a soda jerk, stocker, and small-item cashier.

Using the US Inflation Calculator, anything I bought for fifty cents would now cost $4.50.

Note: these figures were requested on March 16, 2014.  A week later, many were a few cents higher.

I had a couple other jobs in that range.  Then in late fall 1954 I started at Kroger’s as a stock clerk and bagger.  My starting union-negotiated salary was $1.05.  A dinner at a small diner then would cost $9.13 now.

When I flunked out of Case Institute of Technology in January 1958, I was earning $1.75 at the same Kroger’s store.  Anything I bought with an hour’s wage then would cost $14.16 now.  I was also a relief cashier on weekends.

No Kroger store had any full-time openings then.  I eventually was hired as “third man” at a new Pic’n’Pay.  Third man was sort of meaningless.  I was after the assistant manager in groceries only.  Produce and meat were separately run departments under the manager.   I was only a glorified stocker and bagger.  They wouldn’t let me be a cashier because I wasn’t bonded.  They also did their best to make sure I never worked close to 40 hours per week.  They would have to give me more benefits.  My wage, in a union store?  $1.54!  I had to get the help of a union business agent I knew to get my $1.75.  That $1.54 is now $12.46.  Don’t you think a fast-food manager has a harder job with more responsibilities than a grocery clerk?

When I went to Ohio Wesleyan in the fall of 1958, I worked my first year at a local Kroger store.  My wage was $1.54!!!  I made the mistake of not putting that in writing to the union steward.  He was sort of in the pocket of the manager and never really acted on my behalf.  When I called the union office in Columbus they pointed out that I had waited too long without filing a written claim.

In June 1960 we were married and I started graduate school back at Case.  I also had a graduate assistantship that paid $75 per week.  Our upstairs apartment cost $65 per month and $75 when we moved downstairs.  That $75 per week would be $592.69 in 2014 dollars.  If I supposedly worked 20 hours per week, that would be almost $30/hour.   I checked current graduate assistant salaries; the average is about $20,000/year or about $384/week.  I was treated like a king!  I was allowed nine credits per semester, I had use of the gym and library, and I had free parking in the lower lot.

I didn’t go on to a PhD program and opted for a full time job.  My interviews were with Sikorsky in Framingham  MA, GE in Syracuse NY, and Univac in St. Paul.  I don’t remember the exact offers from each, but it was something like $8,400, $7,900, and $8,100.  All things considered, I took the job nearest the Boundary Waters starting on Feb 3, 1963.  The things I could buy then with that money would cost $61,918.94 today.  Ah, a bright spot!  A computer software engineer with a master’s degree can start around $85,500!  But, the complexity of the work is far, far greater than when I started on mainframes that were giant toys compared to my iPhone.  No wonder the computer industry wants to increase the number of H-1B visas for programmers.

When personal computers came along I saw no future in mainframes and started my own one-person company.  I never implemented my grand visions and after over ten years tried getting a computer job.  Ha!  The checklist for “skills” was far longer than just a Masters in Mathematics.  I eventually wound up driving a school bus in the Twin Cities and then moved up to transit buses, aka city bus.  I started at $8.50/hour in 1995 and wound up with over $12/hour in 1999.  These translate into 2014 dollars as $13.05 and $18.42 or $27,144 and $38,314 per year.  According to salary.com, twenty-five percent of school bus drivers in Duluth earn over $35,623 per year.  I assume that those have to get a lot of charter work.

My last job was as a ski instructor.   I think my final pay in 2007 was around $8.00 per hour.  That would be $9.03 in 2014 dollars.  But the work was spotty depending on the weather and the people who show up.  I don’t think I ever got more than 30 hours per week.  I don’t know what the current pay is, but I did get nominally priced season passes for my wife and myself, a nifty jacket at a good price, and discounts at Ski Hut.

Other than the ski instructor, which often is a fun job, a computer programmer, which takes far more specialized learning than I had, and some school bus drivers, I think too many workers are worse off than I was way back then.

I think Adam Smith is being shown right again, it is lawful for the masters to organize to keep wages down, but it unlawful for the workers to organize to raise wages.

- Mel

You can find more of my thoughts at
http://magree.blogspot.com