Wages doubled

[Lucky_Country]

Over the last 10 years my wages have doubled great you may think!
Problem about that is house prices have tripled, fuel has tripled which relates into everything we do groceries, holidays etc.
The point being is it really the everyday persons wage demands driving the inflation dragon or are they being left behind yet companies still dont share their profitability.

 

[Kimosabi]

Over the last 10 years my wages have doubled great you may think!
Problem about that is house prices have tripled, fuel has tripled which relates into everything we do groceries, holidays etc.
The point being is it really the everyday persons wage demands driving the inflation dragon or are they being left behind yet companies still dont share their profitability.

And the most important question to ask is, where did all that extra money come from?

 

[Lucky_Country]

And the most important question to ask is, where did all that extra money come from?

Credit !
Is Australia set up for a sub prime style collapse of housing ?

 

[vishalt]

Umm we don't have 90 million people with bad credit history who take teaser loans out of government chartered organisations at 2.5%?

 

[Nyden]

Credit !
Is Australia set up for a sub prime style collapse of housing ?

Inflation is something that always has, & always will happen.
All this "new money" obviously comes from the printing of more money.

Well, that isn't actually the primary cause! International value based on Australian revenue, & growth also of course plays a major role

Now, just the same as when a company issues more stock - the pre-existing stock devalues a little bit each time. Same principal here, really.

Your wages have doubled not because of earned pay-rises or the likes, but out of requirement. The more devalued our money becomes, the higher costs that companies need to charge for products, & services; and this "increase" in revenue flows back to the employees as an "increase" in pay.

Unfortunately, average wages don't quite seem to keep up with inflation, & things are always becoming increasingly difficult.

With an ever-growing population, one can only stipulate that eventually, there just isn't going to be enough of that pie to go round At least, by current living standards.

We'll all be living in vertical apartments some day the size of our current living rooms! With mandatory grey-water 30 second showers, & a ban on air conditioning in our 50c degree cities!

 

[Kimosabi]

Inflation is something that always has, & always will happen.

This statement is incorrect.

America had almost no inflation for over 100 years before 1913. The reason, they only used gold and silver as money and because there was a finite amount of money, there was no inflation...

 

[Nyden]

This statement is incorrect.

America had almost no inflation for over 100 years before 1913. The reason, they only used gold and silver as money and because there was a finite amount of money, there was no inflation...

Yes, but that was when money was backed by something absolutely solid. Realistically, gold supplies are finite - there isn't enough for the whole world to ever be backed by such again. Even if it were, the need for more money would still dilute the value of each dollar to represent a % of gold.

I don't think you can count the 1800s though. Heck, I'm sure they didn't have inflation in periods of BC as well :


Oh, and you stated almost no inflation; that still leaves my statement correct. I never stated we always will have / had high inflation, but just inflation. It's relative, really. I'm sure there will be no inflation for the next 20 minutes. The point is; there is always a continuing trend of inflation.