What Would Babe Ruth's Salary Be Worth Today?

According to the website www.measuringworth.com, "Determining the relative value of an amount of money in one year compared to another is more complicated than it seems at first." In fact, there is no single "correct" measure, and economic historians use one or more different indicators depending on the context of the question.

Click here for a calculator that will provide six indicators for making such comparisons in US dollars between any two years from 1790 to 2005. They are the CPI, the GDP Deflator, the Consumer Bundle, the unskilled wage rate, the GDP per capita, and the GDP.

What am I Worth by the Hour?

Divide your annual pay in half, and drop the last three (3) zeros.  For example, if you make $100,000 a year, you would make $50 an hour (based on a 40-hour week.)

What am I Worth?

Before negotiating a staring salary or raise,  know what your worth in the market place.  Web sites like salaryexpert.com or payscale.com are a great place to find out the salary range for job.  Another useful guide is the Occupational Outlook handbook from the Labor Department.

Remember to frame the discussion as a benefit to your employer.  At a minimum your employer should agree to match inflation annually, which has averaged 3% over the past decade.  Companies rarely deny merit-based wage increases because pay is the most fundamental tool for attracting and keeping valuable employees.  

Click here for additional information about negotiating a raise from the New York Times.