Quote:
Originally Posted by dyna mo
we're a long way away from inflation and full employment, both of which are necessary for your doomsday example.
the other part of this that doesn't make sense is if wages rise, then people have more $ in their pockets to buy more, not less.
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It would mean people would have to buy less, a lot less. This would effect the retail sector of the economy.
I remember the time when the UK was an exporting industrial country. We bought a lot less, things had to last longer.
Because wages were never enough to buy the goods like we do today. If wages rise, so does the costs of the goods. And before you know it, that new widescreen TV, latest laptop, iPad, phone, etc. Are beyond your reach. You will have to use the one you have until it no longer works well enough.
Bit like 99% of the people did pre 1980.
That's what a billionaire doesn't understand. Until he finds his workers are on strike for 20% pay increase to keep up with rising prices, and bills for all the TVs, lights, electrical sockets, beds, sheets, mattresses, bathroom fittings, table, chairs, etc. In the hotels quadruple.
Unless he does understand and hopes you don't.