I think a good way to test this is to look at minimum wage.
Since 1997, when minimum wage was $7, it has grown to $23.15 in 2024 (sorry, the data I used only went to 2024 and I didn’t think to grab the 2025 number).
The “average” here is 4.9% per year. I use “average” in quotes as it’s the value needed each year to reach the end number (the Compound Annual Growth Rate), not actually an average. I used this calculator: https://cagrcalculator.net/
I think a good way to test this is to look at minimum wage.
Since 1997, when minimum wage was $7, it has grown to $23.15 in 2024 (sorry, the data I used only went to 2024 and I didn’t think to grab the 2025 number).
The “average” here is 4.9% per year. I use “average” in quotes as it’s the value needed each year to reach the end number (the Compound Annual Growth Rate), not actually an average. I used this calculator: https://cagrcalculator.net/