Tuesday, May 23, 2006

Cost of Inactivity 2: Lets get Historical

Revert to the last post:
Cost of Inactivity I and look at the numbers from the past Reports.

Let's say someone actually started paying attention to the numbers back in 1997, downloading the Reports and looking at the numbers. Well in that Report the price of inactivity was 2.23% of payroll. People paying attention would have to admit that keeping 2.23% of payroll in pocket that year would have to be offset by increased payouts in years forward. Well lets say I was making $32,000 back then compared to $50,000 now. My cost for a permanent fix? $713 dollars a year plus whatever increases in income I gained between then and now. Which at $50,000 would be $1150 a year.

Well I could do the arithmetic and maybe will but I am looking at roughly $8000 plus accumulated interest as the cost of doing nothing and what is the cost of my not accepting a 2.23% boost in payroll back in 1997? 1.92% going forward.

Crisis mongers who insisted that we would pay and pay for doing nothing back then need to return to their abacuses. Thousands left in my pocket since then and a smaller bite going forward.

The math continues in Part 3 of Cost of Inactivity.

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