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Response to IndyPragmatist123 (Reply #4)

Wed Mar 6, 2013, 07:31 PM

17. Wages do not and cannot affect retail prices.

If cost increases could be recovered through price increases, no business would worry about cost increases.

Fact is, prices are determined in the market by the intersection of supply and demand.

Business can either make a profit with market prices, or not. If not, they should leave the market. They're not good enough nor efficient enough to deserve to be in business with those who are.

AGGREGATE wages do however, increase the size of markets, creating bigger GDP, viewed by economists as a favorable outcome.

See, if HIGHER wages were BAD, bank executives would refuse those huge bonuses that they get as regular as clockwork. And bosses would refuse to take raises. But they don't.

Theory and practice meld perfectly in this case, making an economic resonance that I can hear from here.

(Break into "The Hills Are Alive....")

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JaneyVee Mar 2013 OP
Cleita Mar 2013 #1
JonLP24 Mar 2013 #7
demwing Mar 2013 #18
Cleita Mar 2013 #22
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lonestarnot Mar 2013 #32
BlueJazz Mar 2013 #2
Mnemosyne Mar 2013 #36
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IndyPragmatist123 Mar 2013 #4
trof Mar 2013 #6
SomethingFishy Mar 2013 #8
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demwing Mar 2013 #19
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SomethingFishy Mar 2013 #38
IndyPragmatist123 Mar 2013 #28
progressoid Mar 2013 #29
davidn3600 Mar 2013 #30
OldDem2012 Mar 2013 #14
angstlessk Mar 2013 #16
LineLineReply Wages do not and cannot affect retail prices.
mbperrin Mar 2013 #17
NoGOPZone Mar 2013 #20
laundry_queen Mar 2013 #35
airplaneman Mar 2013 #5
Mnemosyne Mar 2013 #37
ZRT2209 Mar 2013 #9
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reformist2 Mar 2013 #34
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