3 ms·
Sometimes you can't beat inflation. Wealth equality is inherently inflationary. If people in developing nations start demanding the same standard of living, pri
by fny 4y ago
Sometimes you can't beat inflation. Wealth equality is inherently inflationary. If people in developing nations start demanding the same standard of living, prices are screwed, costs go up, and certain cost changes cannot be hedged.
For example, how exactly would you plan on protecting yourself against wage increases? It's not like there's a futures market for wages.
- jsmith45 4y agoIf people could agree on some source of unbiased data about average wages that updates frequently for a job type, then there certainly could be (cash-settlement only) futures based on that value. What seems relatively unlikely is that you will find people willing to offer physical settlement futures! The market would probably also be somewhat shallow, being more speculators than anything else. Basically only groups acting more like insurance companies would be willing to add much to the depth of the market, and obviously they would sell such futures at such a steep premium that is unlikely to be a very useful hedge.