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> By increasing everybody's salaries, it seems likely to me the cost of goods and services would go up by virtue of inflation. But then everybody's salary stag
by makeitdouble 4y ago
> By increasing everybody's salaries, it seems likely to me the cost of goods and services would go up by virtue of inflation.
But then everybody's salary stagnating hasn't made the cost of goods stagnate. There's no such simple and direct link between the two.
- sneed-oil 4y agoMaybe the cost of imported goods has gone up
- p4bl0 4y agoIt has, partly. But a part of the inflation at least in France/Europe is also due to big corp choosing to increase prices because they can (since "there is inflation"). For example Unilever has distributed very high dividends (€19B, for a total turnover of €80B, that's almost a quarter of their total revenue going directly towards to their shareholders while their workers and consumers see nothing), while the numerous products the company sells (which are mostly daily usage food and sanitary products) have seen their prices skyrocket "because of the inflation".
- candiodari 4y agoThen France should not have allowed Unilever to merge so much, or at least guaranteed competition in France. If this works, they must have had either state support or a monopoly position.
- andrepd 4y agoWhy? Why is this an axiom? Example: supermarkets where I live co-ordinate their prices. There are 5 big chains and they all increased prices in tandem (and margins, so nothing to do with increased costs). They get slapped with a 100 miliion euro fine every year or two, but what do they care? It's a drop compared to the amount they profit from the cartelisation.
- ChuckNorris89 4y ago>But then everybody's salary stagnating hasn't made the cost of goods stagnate Because Apple, Tesla and the international market for fungible goods like gas or grain, doesn't care about the stagnating salary in your country. They'll still want X USD for their products.