It may be a problem, but it also alleviates a lot of the problems of having to have a group continually decide on a number on good and bad years which would become highly political. Even if it was a non partisan group, partisans have their way of fucking with that kind of thing anyway. Then you get a bad government and or group to just start saying 0% year after year.
A mostly predicable set value based off another value is less likely to get messed with, even if it has its own problem.
Didn’t they just raise minimum wage recently?
Yep:
https://news.gov.bc.ca/releases/2024LBR0006-000240
A 3.9% increase, which is exactly the average inflation in 2023.
But, if everything raised by the same percentage, the actual number difference between those two numbers also gets larger by the same percentage.
100 is 90 larger than 10.
110 is 99 larger than 11.
Larger difference, same percentage increase.
100 + 10% = 110.
10 + 10% = 11
90 + 10% = 99
That’s the problem with blindly using percentages.
It may be a problem, but it also alleviates a lot of the problems of having to have a group continually decide on a number on good and bad years which would become highly political. Even if it was a non partisan group, partisans have their way of fucking with that kind of thing anyway. Then you get a bad government and or group to just start saying 0% year after year.
A mostly predicable set value based off another value is less likely to get messed with, even if it has its own problem.