2ndDegreeRN / 2ndDegreeRN is on Nostr

Husband and Father of 3, Work in Healthcare, in BTC since 2017

Last Notes

2024-08-24 03:10:21

Of dollars, cents and relative value of a salary perspective: I was told I should be grateful for making less than last year, both objectively and contemporary
So, I started a new job last year and one of the perks I had was a sign on bonus, effectively equal to 22.5% of what would be my base salary, hourly rate x 52 weeks a year x 40 hours a week. (To make it more objective will be discussing percentages and value over time relative to inflation. The difference is substantial, believe me.)
Since this was given to me at the beginning of the job I will not be gettting it again this year, so this year I will effectively be working for 22.5% less relative to last year, a pay cut of -22.5%. Furthermore, current US Government inflation estimates (which judging by my grocery store, fast food and insurance premiums is probably low) at 3.2% year over year. Meaning, if my salary remains the same I would be getting 25.7% less value than I would the year before for the same job.
My annual performance evaluation is scheduled around my starting date which just past, so I received my annual raise along with a 'market rate adjustment' at the same time. I was told the market rate adjustment was to compensate for a changing marketplace which to be fair is nice as at my last company they didn't do this, only annual raises. It was stressed that the raise was merit based and the rate adjustment was automatic, altho unsure as to the veracity of those claims.
Here's where a bit of the accounting shenanigans seems to happen. My market rate adjustment was +8%, and my annual raise was +2.5%, making my total compensation +10.5% higher than my base salary from last year. We also had an annual 'profit sharing' bonus essentially of another +1%, probably to encourage us to feel more invested. Altogether I am to be recieving 11.5% more in base salary this year than last year.
But this is only compared to my base rate without the sign on bonus, in terms of my overall compensation I am actually making -11% less this year in terms of overall dollars in the bank. When it gets adjusted for inflation the number is even worse, with me making -14.2% less than last year.
Looking at the situation thru this lens, it makes complete sense why people in less stable aspects of their careers are almost forced to move jobs every 2 years just to stay neutral, let alone progress. My contract with this company was for 2 years, with no obligation to repay sign on bonus after that time. Without the windfall of the initial sign on from the current employer it makes no sense to stay with them when/if I can get initial salary advancement from another company plus the possibility of another sign on bonus.
next year around this time may be looking for another position largely because with the rate things keep going up I may not be able to afford working there. Until retention bonuses and/or overall compensation rise faster than hiring bonuses I foresee this cycle continuing to play out.
As it relates to Bitcoin, I originally wrote this in March 2024. Checking the historical ticker the price was 65k per Yahoo Finance, a 5% draw down since. However, I started this job in March 2023 when BTC price was 27k, a more than 200% increase. If the trend for the value of wages and BTC continues, foregoing a Starbucks everyday now may buy enough BTC to be more valuable than a full day's work sometime in the mid-to-longer term future.

2024-08-24 03:10:21

2024-08-22 21:03:16

I think it's funny that around the turn of the millennium the big vide for young people was 'go to college to go to college. Even if you don't like your major it will still be better than not going'. [Here] (https://youtu.be/0jYVAmOlUvI?si=3H0_QHHtg0eWsbHc) is a way more raw version of what a college degree means now. Except these days in addition to having to take on a ton of debt in order to obtain that degree you also need to get direct experience for the job you are applying for (usually in the form of unpaid internships) before you can get anything more than minimum wage retail. Bitcoin and on the ground at the changing financial system at large seem to be the only places this prerequisite enslavement doesnt exist or at least has a much lower bar to entry.

2024-08-22 21:03:16