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In reply to the discussion: Why $1,000 One Time Bonuses are Part of the Tax Scam [View all]ProfessorGAC
(65,853 posts)When i start hearing about these big firms offering the bonus and an increase in pay, then i'll pay attention. In the meantime, not so much.
Even in your work, you've been averaging 2.5 to 3% increases, while the 10 year average inflation rate has been reported at 3.22%/yr.
That means that companies got healthy by increasing wages by less than the rate of inflation. Now a one time $1000 is supposed to be a big deal.
Using your number of $33/hr and assuming 2.75% per year for five years, those salaries would have been $28.80 per hour 5 years ago. If wage increases had merely been tied to equal inflation, the average wage would be $33.75/hr, not 33. Hence this one time bonus doesn't even make up for the 75 cent difference for just this one year. Take into account the other 4 years, and it doesn't being to make up the losses to inflation over the last 5 years.
As you said, it's a PR scam.