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It will all sort itself out. If you can’t hire employees at a certain wage then either wages increase or the job changes. There is no other option. The “job cha
by seibelj 5y ago
It will all sort itself out. If you can’t hire employees at a certain wage then either wages increase or the job changes. There is no other option. The “job changing” could also be changes to make it more palatable.
- ghaff 5y agoOr you change your product/market in a way that is more tolerant of higher wages even if it changes your target customer in a way that excludes a segment of your previous market.
- seibelj 5y agoYou can increase the price of your product. This is what’s happening throughout the entire economy - workers demand more money, wages go up, prices increase, inflation hits 5%. It’s not surprising.
- HarryHirsch 5y agoThe obvious other adjustment would be to decrease the rent, but that would affect loan valuations, and we can't have another round of bank failures. (The other problem is the building materials shortage because you can't inflate yourself out of the shortage of available housing, you need to actually build new construction, but we are getting sidetracked.)
- ghaff 5y agoMaybe. It depends if the wage increases are going to the buyers of your product or not. If the wage increases are indeed flowing to low-paid fast food workers and others in the same general category who eat a lot of fast food, then you can probably just increase the price of Quarter Pounders. If someone who doesn't eat Quarter Pounders is getting the money, not so much.
- rackjack 5y agoIsn't this inflation also caused by the Federal Reserve printing a lot more money? edit: Wait the TREASURY prints money, not the Federal Reserve. The Federal Reserve just... greases the wheels of banks, I guess?
- alphabettsy 5y agoOr this narrative is being used to drive price increases. McDonald’s increased their profits and increased their prices last I heard and one didn’t necessarily drive the other.
- WalterBright 5y agoIf they go up by the same percentage, it's running in place, not extra profits.
- alphabettsy 5y agoIt’s not the same.
- jonny_eh 5y agoOr we increase immigration to account for falling birthrates.
- LogonType10 5y agoPlease tell us what the "correct" birthrate is.
- wayanon 5y agoI think something like 2.1 births per woman for a stable population not incl migration in/out. In the U.K. it’s 1.65 but I’m not too bothered.
- LogonType10 5y agoDo we want to have the same population forever? We're running out of drinking water.
- cto_of_antifa 5y agoGood point. Maybe we could come up with a top-down approach to limit births for the objective of increasing our own quality of life
- inawarminister 5y agoAnd increase the brain drain on the developing world, yay!
- int_19h 5y agoIt's individual persons in the developing world that make the choice to move or not. Why are you so keen to build barriers to prevent them from making that choice?
- AussieWog93 5y agoBrain Drain is just a theory, and a pretty contentious one at that. There's quite a bit of evidence to suggest that the positive effects of emigration can outweigh the negatives.