It really annoys me when people talk about money without taking into account things like inflation and socio-political circumstances.

I had to listen to an Army Command Sergeant Major tell the soldiers under his command how lucky they are that the military pays them so much these days. He stated as a private, circa 1984, he earned approximately $215 twice a month after taxes. So, in comparison to that figure, the pay of a private today is so much higher that it amazes him.

Now, let's look at the actual numbers. We'll approximate since this doesn't need to be precise; we just want a decent ballpark figure.

He had a monthly net income of $430 as a private. That's an annual net of $5160.

In FY2006, the monthly gross base pay for a private was $1273; annual gross $15276.

Let's say that the private files as single and pays an estimated $650 will be paid annually in taxes; his annual net income is $14626.
Caveats:

• I used a the IRS's Withholding Calculator; however it's for 2007. I assume the difference in taxes for someone in this tax bracket between 2006 and 2007 is statistically negligible.
• I assumed no state taxes.

After adjusting for inflation (using The Inflation Calculator) between 1984 and 2006 (a period of 22 years),
that $5160 in 1984 is equivalent to approximately $10070 in 2006.

So, really over 22 years, privates in the military earn $4556 or approximately 31%.

However, you need to account for other factors that are related to this 31% increase, such as:

• From late 2001 through the entire FY2006, the nation has been involved in foreign conflicts.
• Privates in the current army are more likely to be deployed overseas into hostile territory and separated from family.
• Through military actions in Afghanistan and Iraq, a private in the current army is far more likely to be injured/wounded or killed in action.
• The demand for soldiers (recruiting and retention) is significantly higher than it was 22 years ago. Thus, personnel are far more valuable.

When all the above factors are taken into consideration, the argument that privates are paid much more turns out to really lack a solid foundation.