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Increasing wages in the U.S. will increase the prices on everything, including imports. The minimum wage employees at Walmart stock and sell imported merchandise, no?
Much worse if more of the merchandise was produced in the U.S.
Much worse if more of the merchandise was produced in the U.S.
Yes, but prices will still increase on imported goods as they do not magically appear at their final destination without U.S. wage earners having a hand in the process.
And you are ignoring the compounding effect on increasing prices that raising wages will have. You have not ever addressed that issue.
I am not ignoring the compounding effect on increasing prices that raising wages will have. If you are selling something at a profit then raising the wages of the workers involved in the manufacturing distribution and selling of the products will not result in the prices going up faster than the wages it wont unless you are taking more of a cut in profit. Going up in lock step I have said that. Doubling minimum wage doubling the price of something made by minimum wage workers. Not more than doubling the price of something made by minimum wage workers. It should be less than doubling the prices if you double the wages. The prices of things will go up with the increasing wages.
You have said that you want to see the prices of things going down. That is very bad for the economy. When a new piece tech is introduced then the price is high as it goes into production and the initial investment is recovered then the prices drop, that is not bad for the economy.
Printing a bunch of money and giving it to everyone, well that should smoth out the transition to the higher wages.
Yes, but prices will still increase on imported goods as they do not magically appear at their final destination without U.S. wage earners having a hand in the process.
I am not ignoring the compounding effect on increasing prices that raising wages will have. If you are selling something at a profit then raising the wages of the workers involved in the manufacturing distribution and selling of the products will not result in the prices going up faster than the wages it wont unless you are taking more of a cut in profit.
Did you not read the info I provided on collapsing profit margins? Here it is, again:
Quote:
Current-production cash flow (net cash flow with inventory valuation adjustment) -- the internal funds available to corporations for investment -- decreased $68.4 billion in the third quarter, in contrast to an increase of $61.1 billion in the second.
I may agree with this statement if the unemployed were out buying new TVs and clothes etc.
Why wouldn't many of them be buying TVs, etc.?
It encourages them to spend money irresponsibly...easy come, easy go.
When that runs out, they will either get more or they'll have a smoother transition into welfare and take their place on the plantation. Dependant for life.
The collapsing margins is a real problem. Yes I did read it. The solution is very simple. Print a bunch of money and give it to everyone, this will stimulate the economy like nothing else will, about $3k per man woman and child in the US.
Quote:
Originally Posted by InformedConsent
No, I said raising wages will force commensurate price increases thus negating any perceived advantage to raising wages.
Raising wages far enough will force a commensurate price increase in houses.
The falling prices of houses will be problem for a very long time. In Japan it has been twenty years and the prices haven’t stopped falling. With the deficit what it is and the debt what it is we will be into hyperinflation long before we recover from this mess.
Raising the price of houses is a real not perceived benefit to everyone.
So unemployment and welfare and food stamps..is this what survival in the US is down to these days ?
For a lot of people yes it is. but for some it is get out there anf take the bull by the horns and get on with it. Those are the ones getting jobs now.
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