this post was submitted on 26 Aug 2024
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Yes.
Printers go brrrr
A lot of things don’t even go up at the inflation rate. Look at the car prices and housing.
Inflation is an average of a number of expenses, so that's always going to be the case.
Car prices: supply is constrained because of supply chain issues where often just a small handful of the myriad of chips in the car are unavailable.
Housing: supply is artificially constrained by various laws, often of the NIMBY type.
It's not just constraints, IT'S FUCKERY. https://www.dailykos.com/stories/2024/6/5/2244971/-FBI-raid-on-real-estate-company-linked-to-Harlan-Crow-s-RealPage-rental-price-fixing
There is that, but the larger explosion in housing prices can be largely chalked up to under supply in popular markets.
I had my economics teacher tell me that it's not grocery stores fault because they just need to make a profit 🥺
I had another teacher tell me that raising minimum wage would cause inflation to go up... as if people aren't literally starving in the streets right now
I don't understand why teachers making 0.0006771% of Jeff Bezos's salary care so much about them
I watched Richard Wolff explain that they didn’t teach him Engels at Harvard. He had to study him at a Catholic school.
Fucking raise the minimum wage. The problem is that prices are rising but wages are remaining stagnant.
Without a way too keep them from just raising costs to match, raising min wage has a limited effect. Taxes on profit are more effective. Reinvestment or raises should be deductable, tax the everliving fuck out of gross profit for the rest.
The area I lived in voted for a minimum wage increase several years ago. Tons of people were saying that it was a bad idea, because the businesses would just raise prices on everything.
Minimum wage increase passed. Prices didn't change.
I think this is because minimum wage increases don't happen in a vacuum. There are other things to consider. If your company raises prices, I'm going to go to a competitor who doesn't. The idea that "they'll just raise prices" assumes that all businesses will react to a minimum wage increase in the same way, and that's not the case.
Perhaps I was being overly cynical but last years grocery hike was all of those businesses acting in concert. Which I'm sure is illegal for everyone but the rich...
Minimum wage should have been tied automatically to inflation rates. Even if it gets increased, 30 years from now we'll be in the exact same boat.
Solid take.
Yeah, the actual calculation still needs to be done right, but having it as an 'automated' process will help reduce this sort of bullshit:
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