(August 12, 2018 at 2:06 pm)Chad32 Wrote: I have family that believes that if you increase wages, the price of everything will go up the exact same amount.
Yeah, that's kind of silly. When wages increase, people have more disposable income, buy more stuff, creating a greater demand for services and manufactured goods, which increases production which lowers prices. Economies of scale work best when wages grow moderately faster than inflation.
Boru
‘I can’t be having with this.’ - Esmeralda Weatherwax
