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You're forgetting about competition. Let's say that every low wage worker becomes suddenly 10% more productive so they start making 10% more money. Would price
by learc83 11y ago
You're forgetting about competition.
Let's say that every low wage worker becomes suddenly 10% more productive so they start making 10% more money. Would prices all suddenly rise 10% so that none of the workers would see any benefit?
This isn't the same as inflation, and will be handled by competitive forces in the market.