People say that a minimum wage increase to $12 an hour in 2014 is a “massive increase” but in fact it represents a mild 4.48% annual rise over the 46 years since 1968 when it stood at $1.60. At $10 an hour the “mass” is reduced to 4.07% annually. At today’s $8.00 an hour that increase is a decidedly mild 3.56% over a 46 year period, including the massive inflationary periond we endured post-Vietnam War. (See WIN, ie “Whip Inflation Now”)
You can do the math yourself, just massage the figures, 46 periods, set the interest and the future value and try it til you get it right. Its an estimation technique familiar in numerical analysis.
Really at this point the issue that the raise has gone unaddressed for so long overshadows the interest rate. Because although these are numbers on a screen, it is our brothers and sisters who are feeling the pain in real life. And they will go on suffering until we raise their wages.