3 ms·

Can you explain how?

s1artibartfast 2y ago
I thought I did, but can give an example. If the median income increases from 50K to 100K (adjusting for inflation), and houses stay at 500k (adjusting for inflation), they have become more affordable without losing value.
- eddd-ddde 2y ago
  But isn't money losing value then? Implicitly making the houses worth 500K also lose theirs?
  - s1artibartfast 2y ago
    I dont understand your question.
- hammock 2y ago
  Well that begs the question, how are you going to double income beyond the rate of inflation?
  - s1artibartfast 2y ago
    If it happens, it will be the same way it has been done for hundreds of years. Increase in productivity. More widgets and stuff produced per worker is the only way to beat inflation. This is the fundamental economic goal of nations which seek prosperity.
    - hammock 2y ago
      How does the correlation of productivity vs income look for the last 50 years?
  - dopylitty 2y ago
    Rather than doubling all income one option would be to make the existing income more evenly spread out. For instance McDonalds' CEO makes ~$20 million a year[0] and they paid out $6.6/share with 726M shares[1] to parasite shareholders[2] while the average non-CEO employee makes $25k a year[3]. Since there are 150000 employees working for McDonalds that means lowering the CEO salary to $200k and eliminating shareholder payouts would free up close to $5 billion/year. If that $5 billion were distributed evenly to all employees they would take in an additional $33k/year, more than doubling their salaries. Of course all these numbers are estimates and there are caveats but the overall point is there's a lot of money out there that's going to a very few people. 0: https://www.restaurantbusinessonline.com/financing/mcdonalds-ceo-chris-kempczinski-got-big-raise-last-year https://www.restaurantbusinessonline.com/financing/mcdonalds... 1: https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/shares-outstanding https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/shar... 2: https://finance.yahoo.com/news/income-investors-know-mcdonalds-corporation-121341390.html https://finance.yahoo.com/news/income-investors-know-mcdonal... 3: https://www.zippia.com/mcdonald-s-careers-7238/salary/ https://www.zippia.com/mcdonald-s-careers-7238/salary/
    - s1artibartfast 2y ago
      Do you realize the CEO salary is literally a rounding error in your calculation? Your answer doesnt have enough digits to express the worker impact of that $20m salary.

I thought I did, but can give an example. If the median income increases from 50K to 100K (adjusting for inflation), and houses stay at 500k (adjusting for inflation), they have become more affordable without losing value.

eddd-ddde 2y ago
But isn't money losing value then? Implicitly making the houses worth 500K also lose theirs?
- s1artibartfast 2y ago
  I dont understand your question.
hammock 2y ago
Well that begs the question, how are you going to double income beyond the rate of inflation?
- s1artibartfast 2y ago
  If it happens, it will be the same way it has been done for hundreds of years. Increase in productivity. More widgets and stuff produced per worker is the only way to beat inflation. This is the fundamental economic goal of nations which seek prosperity.
  - hammock 2y ago
    How does the correlation of productivity vs income look for the last 50 years?
- dopylitty 2y ago
  Rather than doubling all income one option would be to make the existing income more evenly spread out. For instance McDonalds' CEO makes ~$20 million a year[0] and they paid out $6.6/share with 726M shares[1] to parasite shareholders[2] while the average non-CEO employee makes $25k a year[3]. Since there are 150000 employees working for McDonalds that means lowering the CEO salary to $200k and eliminating shareholder payouts would free up close to $5 billion/year. If that $5 billion were distributed evenly to all employees they would take in an additional $33k/year, more than doubling their salaries. Of course all these numbers are estimates and there are caveats but the overall point is there's a lot of money out there that's going to a very few people. 0: https://www.restaurantbusinessonline.com/financing/mcdonalds-ceo-chris-kempczinski-got-big-raise-last-year https://www.restaurantbusinessonline.com/financing/mcdonalds... 1: https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/shares-outstanding https://www.macrotrends.net/stocks/charts/MCD/mcdonalds/shar... 2: https://finance.yahoo.com/news/income-investors-know-mcdonalds-corporation-121341390.html https://finance.yahoo.com/news/income-investors-know-mcdonal... 3: https://www.zippia.com/mcdonald-s-careers-7238/salary/ https://www.zippia.com/mcdonald-s-careers-7238/salary/
  - s1artibartfast 2y ago
    Do you realize the CEO salary is literally a rounding error in your calculation? Your answer doesnt have enough digits to express the worker impact of that $20m salary.