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I wonder which way cause & effect goes.
by mcphage 6y ago
I wonder which way cause & effect goes.
- gruez 6y agoI'm sure all developing countries need to do to raise their GDP is to increase their minimum wage! /s
- imtringued 6y agoLow wages provide no incentive for productivity growth.
- gruez 6y agoAccording to that logic, was the industrialization of north america and europe caused by... wage growth?
- mcphage 6y agoWell, GDP is a measure of how much your country produces. Why do things get produced? Because it can be sold. Who buys things? People with money. How do people get money? By working and being paid. So pay people more, then they'll buy more, then producers can produce more, then your GDP goes up. Is it that simple? No, of course not. But it's not a crazy chain of connections.
- gruez 6y ago> How do people get money? By working and being paid. So pay people more, then they'll buy more, then producers can produce more, then your GDP goes up. That sounds more like inflation than productivity actually going up.