I calculated how many times the NET minimum wage has increased from 1976 to today vs inflation. What the hell are they counting and what trap are they setting for us?

They are now drumming up the “minimum wage-inflation link” to us, selling the narrative: “Don’t worry, if prices go up, your salary will automatically go up too, so you’ll never lose your purchasing power”.

So I sat down and did the exercise over time to see what happens if we trust the official indicators. I got the historical data exclusively for the net (before income tax — yes, it has the bottom income tax) pocketed by the dataset of Gyronomics and compared them with official cumulative inflation.

Here’s what the official math shows:

• Since 1976: Net salary multiplied by 67,4 (from €13.7 to €924.5), while inflation multiplied by 44,9.
• Since 1985: Net salary multiplied by 9,6 (from €96 to €924.5), while inflation on 9,3.
• Since 2000: Net salary multiplied by 2,1 (from €442 to €924.5), while inflation on 1,7.
• Since 2008 (pre-crisis): Net salary multiplied by 1,4 (from €667 to €924.5), while inflation on 1,3.

The paradox of statistics

If automatically linking to inflation was the solution, then according to official government figures, a bottom-line worker has to buy more things today than in 2008, 2000, 1985 or 1976.

On paper, your salary has run faster than inflation in all periods. But in reality, we all know that dating is a lot harder today than it was in 2008 or 2000.

When you look at month-over-month or year-over-year inflation, the cooking of the numbers goes unnoticed. They tell you “this year we only had 3%”, next year “only 2%”. It seems reasonable, almost painless in their microcosm. But when you open the shot over time, the theft stands out. Statistical reality has absolutely nothing to do with the material world we live in.

This is exactly where the huge pitfall of “auto-adjusting” comes into view.

Where is the index scam hiding?

I know the sub economists will be quick to say that the Consumer Price Index (CPI) measures a general average. And they’re right, but that’s exactly where the problem is:

1. The “Inflation of the Poor”: The general CPI is calculated for an “average household” (which often owns a home without a loan). But for a person living on the bottom, the rent, the supermarket and the electricity absorb the 90%-100% of his income. For this worker, real survival inflation is not the 2% or 3% they announce, but double digits.
2. The "Hedonic Adjustments" and the gadgets: The index is artificially compressed downwards by price drops in technology and “quality adjustments” (if a mobile costs €300 like last year but has a better camera, the statistic records it as reduction price). Except we don’t eat Smart TV for dinner, nor do we pay the rent with microchips.

The big trap for the future

When they promise you an “automatic increase based on inflation”, they lock you into poverty:

If rent goes up 15% and food goes up 10%, but the official “teased” average inflation shows 2.5% (because TVs or clothes fell), your salary will only get a 2.5% increase. On paper you will be “covered” and the government will wash its hands, but in reality you will be poorer every year.

The Eurostat figures confirm the reality we live in: we are firmly in the penultimate position of the EU in terms of purchasing power, above only Bulgaria.

They sell us statistical smoothing for protection.

What is your opinion? How will this parallel statistical reality be broken?