5 ms·

If everyone earns 2x but everything costs 2x, what changes?

• Tade0 8y ago
  Thing is, it doesn't. As an example cars are produced everywhere around the world but the same product costs roughly the same regardless of geography. This way in rich countries people can afford domestically manufactured cars, while in poor countries they can't.
• scarejunba 8y ago
  Because that never happens. TVs aren't affected by the price of milk. Your vacation in Germany costs the same whether you live in San Francisco or San Luis Obispo. Your iPhone costs the same. Etc. Etc.
  • flukus 8y ago
    It does happen to a certain extent, compare basic food like rice and bread in a third world country to a developed one, for a lot of products the price is more a case of what the market more than it is cost of creation.
• otikik 8y ago
  If "everyone" and "everything" mean "the whole word population" and "all costs in the world", then yeah, nothing changes. But if it happens on a smaller region then oh, yeah. Lots of things change.
• dominicr 8y ago
  It's not that simple as the multipler is not even across all things and all jobs. Eating out or getting a take away is 2x or 3x the cost of the UK/US but your server & chef both make a decent wage without the need for tips. Electronics are about 1.2X the cost of the EU. The starting salary of a supermarket worker is 2x that of the UK. But a software developer's salary is only a fraction more than in the UK. The effect is that the range of inequality across the population is reduced. It's a social democracy, so in general the population like this arrangement.