We are in the decline/decadence phase of western civilization so its only natural that the system is getting weighed down by increasingly more parasites and rent seeking until it eventually becomes unsustainable and collapses.well mainstream media ( and official government outlets ) create information bubbles , and only the sharpest of pins puncture those bubbles
i would argue about the 'so good for so long ' i have seen the erosion and corrosion over the last four decades , the great Australian brain drain for example , or the unabated perfusion of red tape , but i cannot in all conscience blame one faction or another the major factions have all made their contributions
but what we might now see are the undeniable consequences of all the trends , and why would the workers agree to tighten their belts when the 'fat cats ' delight in getting fatter ( please note most ' fat cats ' are not the business owners ) , seen management grab all the glory and performance bonuses , and engineer further 'belt-tightening ' to earn some more performance bonuses .. and if they do a really good job they are recruited at a nice premium to an even bigger corporation
it isn't only the watermelons that take a light year if you surrender a millimeter
wage-price , or more accurately price-wage spirals have happened in the past and that might happen again in the near futureIf you are trying to hint at the concept of a wage price spiral its a myth that has long ago been debunked by sensible economists and by empirical data. Its a bogeyman pushed by business interests to give them political cover for keeping wages depressed.
We are in the decline/decadence phase of western civilization so its only natural that the system is getting weighed down by increasingly more parasites and rent seeking until it eventually becomes unsustainable and collapses.
Some companies pay out a percentage, which IMO is a win/win.That is the fault of businesses for being short sighted and for punishing people doing the right thing. If you do not use your sick leave when you eventually leave a company it all dissapears. If company's had a policy to pay out all unused sick leave at the termination of an employees employment with the company far fewer people would use it.
Yes, slowing down the creation of money will slow monetary inflation, but does not help inflation that is caused by physical restrictions to the supply of goods.The good way of resolving inflation is to stop printing money and also to increase supply of goods (cut taxes and regulation so investment and supply can go up) to bring down prices. The bad way (which we are currently doing) is to destroy demand and send the economy into a recession.
Picture 3 people on a life raft, each day we pay them $1 each and offer them 3 apples for purchase, the apples sell for $1 each and everyone gets an apple.If you are trying to hint at the concept of a wage price spiral its a myth that has long ago been debunked by sensible economists and by empirical data. Its a bogeyman pushed by business interests to give them political cover for keeping wages depressed.
They should pay out maternity leave to couples that didn’t end up having kids tooSome companies pay out a percentage, which IMO is a win/win.
In the past I've worked under arrangements where a rigid pay structure applied and where a 5 year agreement underpins it.in my years of working , wage rises tended to lag price rises by six months to more than a year but then the wage costs trigger extra price rises as business adjust to extra costs
Which is exactly why I said what I said, currently the system is abused, if the company paid out a percentage of what wasn't taken the abuse does reduce.in a perfect world sick leave would be unlimited, and only used when you are genuinely sick. However a certain number of people will always take advantage of things and ruin it for everyone.
I've tried to explain this to people for years, but wage growth is more complex than what most people understand. You only have to look at the govt first homeowner grants to see that builders added the price onto new homes.Picture 3 people on a life raft, each day we pay them $1 each and offer them 3 apples for purchase, the apples sell for $1 each and everyone gets an apple.
Now, if the supply chain of the apples falters and only 1 apple gets delivered each day, it’s going to sell for $3 and be divided among the 3 people.
raising their daily wages to $3 each won’t suddenly allow them to by an apple each, it will just raise the price of that apple to $9.
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this is what happens when there is physical shortages and supply chain Interruptions, simply raising wages doesn’t increase the amount of goods available.
It says rather a lot that from a young age children are given a firm message that savings = bad, debt = what responsible adults do.Printing excess money to a point is the root of all evil. What does the govt teach Australian kids about saving accounts or investing money? Have a look at minor tax rates for savings accounts.
Almost all kids are constantly asked what job they want when the grow up, and are actively taught the concept of working for money, which is great.It says rather a lot that from a young age children are given a firm message that savings = bad, debt = what responsible adults do.
A cynic would think the intent was to keep people working until they drop.
Yes that has already been established. You literally ignored half of what I wrote. I said you need to stop monetary inflation while simultaneously also on increasing the supply of good through tax cuts and regulation cuts. Go back and read what I wrote.Yes, slowing down the creation of money will slow monetary inflation, but does not help inflation that is caused by physical restrictions to the supply of goods.
eg, if bad weather knocks out half of the Avocardo farms, the price of avo’s is going up, the price of Avo’s also goes up if the oil tankers are slowed.
at that point, you just have to tighten your belt and let the prices trigger corrections, eg consumers wasting less, and the producers producing more.
But that was my point, didn’t you see where I listed the 2 causes of inflation ?Yes that has already been established. You literally ignored half of what I wrote. I said you need to stop monetary inflation while simultaneously also on increasing the supply of good through tax cuts and regulation cuts. Go back and read what I wrote.
The reason that wage price spiral has been debunked is thatI've tried to explain this to people for years, but wage growth is more complex than what most people understand. You only have to look at the govt first homeowner grants to see that builders added the price onto new homes.
Wage growth works like a pyramid scheme to a point in first world countries with discretionary income, say you were to increase the labour cost to pick wheat, then that raises the end price of bread, and all the people who consume bread complain and go on strike and ask for a pay rise.
The people who cart the wheat to the markets get paid more, and the people who supply the fertiliser get paid more, the people that bake the bread get paid more, and the people who stack the shelves with the bread get paid more. The end price of bread goes up exponentially otherwise there is no point in making it in capitalist countries.
Printing excess money to a point is the root of all evil. What does the govt teach Australian kids about saving accounts or investing money? Have a look at minor tax rates for savings accounts.
In terms of consumers demanding higher wages it comes down to the question of how do you spread the pain/burden of inflation through society fairly? Should businesses swallow the cost increase and shrink the profit margins (by not passing cost increases onto consumers)? Should workers forego pay rises? Should landlords forego increasing their rents? Should the government forego the increase taxes from bracket creep and land price inflation By increasing the tax thresholds?But that was my point, didn’t you see where I listed the 2 causes of inflation ?
my point is that just raising wages will not fix cost of living increases if the cause is the supply chain.
Also, you can’t just fix the supply chain without having prices rise, the prices rising is actually the mechanism that passes information through the system.
consumers demanding higher wages is literally them refusing to do their part to fix the problem.
Whether the consumers get more in their pay packets, or businesses hide their increased profits under the banner of inflation, the government are going to end up with more in their coffers via PAYE and company tax.In terms of consumers demanding higher wages it comes down to the question of how do you spread the pain/burden of inflation through society fairly? Should businesses swallow the cost increase and shrink the profit margins (by not passing cost increases onto consumers)? Should workers forego pay rises? Should landlords forego increasing their rents? Should the government forego the increase taxes from bracket creep and land price inflation By increasing the tax thresholds?
I would suggest that consumers/wage earners are already doing more than their fair share by getting pay increases below the rate of inflation, meanwhile there is ample evidence to show that business are using inflation as cover to increase prices more than necessary and bolster their profits. I can delve more into that if necessary.
from my observations , suppressing wages , increases crime and civil unrest ( at best that is covertly hostile staff at worst well there are riots happening already )Suppressing wages is not the solution to inflation. You need to curb money supply growth while simultaneously increasing supply of goods and services. Also debt funded govenrment spenidng (I.e deficits) are inflationary and need to be cut
I would suggest that consumers/wage earners are already doing more than their fair share by getting pay increases below the rate of inflation, meanwhile there is ample evidence to show that business are using inflation as cover to increase prices more than necessary and bolster their profits. I can delve more into that if necessary.
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