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Thread ID: 145355 2017-10-09 05:02:00 Well what is the consensus of what the new Government will look like? B.M. (505) PC World Chat
Post ID Timestamp Content User
1440574 2017-10-26 22:03:00 And let's not forget no-one will see the $20 for three years from now anyway. In 2020 the net present value will probably be even less than the new current minimum is worth now. But Jacinda and her finance man have both probably never heard of discounted cash flows let alone understand its principles. All they're counting on is that a lot of water will have passed under the bridge by then and the average voter will be swayed by $20 and other election bribes.

That's a bit of a stretch - Assuming the change occurred exactly three years from now, the inflation rate would have to be 8.29% for the NPV to be 0.
Even assuming inflation goes up to 4%, the 2020 minimum wage would only need to be 17.72 to match inflation.

Putting aside personal opinions on the merits of a $20 minimum wage (I'm personally against it), you're clearly not much more knowledgeable about discounted cash flows than you claim Jacinda is.
Nick G (16709)
1440575 2017-10-26 23:01:00 That's a bit of a stretch - Assuming the change occurred exactly three years from now, the inflation rate would have to be 8.29% for the NPV to be 0.
Even assuming inflation goes up to 4%, the 2020 minimum wage would only need to be 17.72 to match inflation.

Putting aside personal opinions on the merits of a $20 minimum wage (I'm personally against it), you're clearly not much more knowledgeable about discounted cash flows than you claim Jacinda is.

I used a Treasury model and a 2% rate of inflation (although I did single out housing as a base). Take it up with them.
WalOne (4202)
1440576 2017-10-27 02:45:00 I used a Treasury model and a 2% rate of inflation (although I did single out housing as a base). Take it up with them.

Interesting, I get a 2020 minimum wage of 16.71 to match a 2% rate of inflation!

PV = 15.75 (NZ minimum wage)
PMT = 0
I/YR = 2% (Inflation)
N = 3
FV = 16.71

Alternatively, (15.75)*(1.02)^3 = 16.71
Nick G (16709)
1440577 2017-10-27 19:46:00 Your formula is correct, Nick. But I rejected the textbook approach as too simplistic, using instead the Reserve Bank calculator with a reverse approach. My septuagenarian (undoubtedly at least partially atrophied) brain reasoned that to be more realistic, as it (RBNZ) uses historical quarterly indices.

By no means accurate, it does however factor in a degree of realism appropriate for this forum and discussion. I did use the building sector calculation whereas strictly speaking I should have used wages.

www.rbnz.govt.nz

:)
WalOne (4202)
1440578 2017-10-27 21:44:00 Sorry Wal but what you have done is analogous to pulling figures out of your arse.
To then use them as the basis for your assertions reveals much about your character and honesty.

So from now on I will view anything you say as being as truthful as a Donald Trump missive.

That is all.
KarameaDave (15222)
1440579 2017-10-27 22:02:00 Sorry Wal but what you have done is analogous to pulling figures out of your arse.
To then use them as the basis for your assertions reveals much about your character and honesty.

So from now on I will view anything you say as being as truthful as a Donald Trump missive.

That is all.

Its never that is all, you people never stop.
prefect (6291)
1440580 2017-10-27 22:07:00 Its never that is all, you people never stop.

It certainly is all I have to say on that subject, prefect.
You can spin on it if you think you can stop me expressing my opinion.
And as for your charming use of the term 'you people'? Says it all about your attitude to life really. :)
KarameaDave (15222)
1440581 2017-10-27 22:08:00 Its never that is all, you people never stop.

Considering Karamea's penchant for slander and libel, that was water off a duck's back ...
WalOne (4202)
1440582 2017-10-27 22:31:00 Quack! :lol: KarameaDave (15222)
1440583 2017-10-27 23:39:00 Considering Karamea's penchant for slander and libel, that was water off a duck's back ...

:thumbs::thumbs:
Zippity (58)
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