posted on Mar, 8 2016 @ 06:38 PM
originally posted by: deadlyhope
a reply to: Bedlam
Do all markets truly impact each other in exaggerated ways?
If only quality burgers were made and all costed three dollars or more, would houses really sky rocket in cost? Would cars suddenly only be available
to the rich?
The economy is a staggeringly complex set of differential equations. There are people that spend large numbers of your tax dollars trying to ferret
them out. Because if you knew them, you could effectively control the world.
But yes, everything affects everything. Sometimes in unusual ways. If you take a job that wasn't meant to support a family, let's say newspaper
delivery, and say 'wow, we need to have every low level manual job earn a wage that's able to buy someone a house and support three kids', then as you
raise them all up to get 15-20 bucks an hour, everyone who's doing NON-trivial work, say EMTs, nurses, store managers and the like are going to say
'if you can get 15 bucks an hour to deliver newspapers, damn if I'm going to get a business degree/BSN/etc and get 12 an hour', so now they're getting
25. And it ripples through the rest of the jobs, and now everyone's making BANK, right?
Nope. What happens is that the cost of goods go up. And then you get huge inflationary pressure, the currency devalues, on and on. Not that long ago,
as history goes, that was enough of an issue in the US that we had to put wage/price freezes into place to cool it down.
There is no magic unicorn where everyone is rich and things are cheap and savings earn huge income etc. It's like holding corks underwater with your
fingertips. You might manage one but not all of them.