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A number of inane comments on minimum wage, wage increases and indexing wages have been made of late. This is a typical example:
Quote:
Originally Posted by greywar
You have a very tenuous grasp of the concept of cause and effect. we've got dozens of examples of minimum wage rising and no sudden problem. But then you pint to 2009 and claim its from the minimum wage increase. Ignoring the whole recession issue that was caused when housing collapsed.
Im quite familiar with supply and demand, and how you are attempting to correlate it to a far more complex topic without understanding that its not that straightforward as the increased pay at the low end causes more demand......
And now here we all are....
Quote:
Fed is looking at sharply rising labor costs
In the first three quarters of this year, hourly compensations in the U.S. nonfarm business sector rose at a rate of 3.1 percent, about three times the pace of advance observed in 2013. Over the same period, unit labor costs accelerated to an annual rate of 2.1 percent from 0.25 percent.
***
Under these circumstances, businesses will have little difficulty in passing their rising labor costs on to consumers to protect their profit margins.
The problem, as always, is to act in time to prevent rising inflation expectations...the Fed cannot stay put until signs of gathering price pressures can no longer be ignored. If it did that, the Fed would quickly find itself well behind the curve and unable to avoid the next round of the inflation-recession cycle.
To those forum members knowledgeable in Economics who correctly predicted this would happen.....hats off to you.
You've been vindicated by real data.
And it didn't take long either.
It is my hope all of you continue to share the accurate knowledge of Economics that you have, in order to educate those who are uninformed and correct those who mislead others through misinformation or disinformation.
It's really important people have the best understanding possible, so that they do not make bad decisions that harm themselves or others financially or economically.
For every action in Economics, there is a reaction, and it doesn't always feel good or tickle.
For those of you who BOLO'd big time....you might want to try to learn something from those who know.
Vindicating...
To those forum members knowledgeable in Economics who correctly predicted this would happen.....hats off to you.
You've been vindicated by real data.
And it didn't take long either.
It is my hope all of you continue to share the accurate knowledge of Economics that you have, in order to educate those who are uninformed and correct those who mislead others through misinformation or disinformation.
It's really important people have the best understanding possible, so that they do not make bad decisions that harm themselves or others financially or economically.
For every action in Economics, there is a reaction, and it doesn't always feel good or tickle.
For those of you who BOLO'd big time....you might want to try to learn something from those who know.
Vindicating...
Mircea
Oh look in the link:
Quote:
This sharply rising price of labor since the beginning of the year is caused by an increasing demand for labor services, as the jobless rate declined by nearly a full percentage point and the number of unemployed fell by 1.2 million.
Let me repeat what I said in the quote you provided:
You have a very tenuous grasp of the concept of cause and effect.
Whenever labor costs go up, the cost of goods goes up.
The same holds true for when the costs of energy and supplies needed for business go up. A trucking company will pass the increased cost of fuel onto their customers who in turn pass it on to theirs.
Whenever labor costs go up, the cost of goods goes up.
Obama and the elitist know Gruber's won't understand that. Most Gruber's are poor and or struggling because they don't understand economic basics.
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