Economics 101
Many people who seem to enjoy talking about the economy don't appear to understand what the economy actually is. The economy is the buying and selling of stuff, be it goods or services. The economy can only function if people have money to spend and buy things. This means that if you pay workers a starvation wage then they cannot purchase things, at which point the economy stagnates and we have a recession. On the other hand, when workers are paid a living wage or better, they become consumers which causes the economy to flourish. In a flourishing economy, the best way to attract customers is by lowering your prices, which of course is possible to do because sales figures are high. In a stagnating economy on the otherhand it becomes necessary to raise prices in order to compensate for lower sales figures. This of course is what triggers recession, it is also why, contrary to the assumptions of people who do not understand economics, raising salaries will not raise prices.
3
Enjoy being online again!
Welcome to the community of good people who base their values on evidence and appreciate civil discourse - the social network you will enjoy.Create your free account
3 comments
Feel free to reply to any comment by clicking the "Reply" button.This also speaks to the issue of empowering people. Our status as servants of our economy is more important than our role as citizens. Our political system is so dysfunctional and morally bankrupt that even if our votes mattered our elected officials are owned by special interests whose bidding they do.
Our most powerful tool is our spending. The cash flow that business and government depend on to maintain the status quo. I for one am beginning to research which conglomerates, corporations, banks and businesses funding the PACS and lobbyists that are owned, controlled by or benefit directly from the wages spent by working people. Selective financial targeting of the investments and properties of the 1% will be a powerful voice if it can be focused, ampliphied and broadcast.
SoloSentient
Level 5
Dec 8, 2017
2
We are already wage slaves. And the rungs on the ladder we must claw our way up on are getting farther apart until it ends nowhere. No savings, no healthcare, no retirement. Unlike humans becoming batteries in the Matrix, we have become ATMs.
You'd think that the people who are so called experts in business would grasp this. But so many of them don't. Unfortunately, due to this fact, your closing statement is incorrect. Raising salaries does raise prices, but only because too many people who claim to be successful in business are just shooting themselves in the foot.
webbew1
Level 7
Dec 8, 2017
2
You will often find in countries in which the minimum wage is higher, the prices are lower, due to increased competition resulting from the stimulated economy
Enjoy being online again!
Welcome to the community of good people who base their values on evidence and appreciate civil discourse - the social network you will enjoy.Create your free account
Share this post
Categories
Agnostic does not evaluate or guarantee the accuracy of any content. Read full disclaimer.