If u drop wages and prices , how do u get increase in real wages ?
They both drop ?
Fwiw , the increase in productivity is mostly by automation , which reduces employment for decades now .
Equating increase of productivity with higher salaries has been stop in the end of 1970-80.
One of the big reason of wealth gap increasing .
The increase of productivity have been mostly monetize by the corporations and business and not redistributed some of it to the workers .
https://www.forbes.com/sites/jackkel...h=31b09ba01009
“ According to a new academic research study, automation technology has been the primary driver in U.S. income inequality over the past 40 years. The report, published by the National Bureau of Economic Research, claims that 50% to 70% of changes in U.S. wages, since 1980, can be attributed to wage declines among blue-collar workers who were replaced or degraded by automation. ”
“ There is no hiding from the robots. Well-trained and experienced doctors will be pushed aside by sophisticated robots that can perform delicate surgeries more precisely and read x-rays more efficiently and accurately to detect cancerous cells that can’t be readily seen by the human eye.
Truck and cab drivers, cashiers, retail sales associates and people who work in manufacturing plants and factories have and will continue to be replaced by robotics and technology. Driverless vehicles, kiosks in fast-food restaurants and self-help, quick-phone scans at stores will soon eliminate most minimum-wage and low-skilled jobs.”
AI is coming even stronger in the next decade .
The Americans worker got totally screwed in the last 50 years by :
Globalisation
Lowering too much tax for the wealthy and corporations
Almost eradicating completely the unions
Cutting the little gold standard that was left from US dollar in 1970
And now your solution is to again lower the wages even more ???
I guess the idea of : it takes money to make money and create wealth is a crazy one right ?
I don’t know any rich people getting wealthy by winning less income , do you ?
Sometimes I wonder if you work at the FED .
You got one economic model in your head , and despite decades of non confirming results , you still stick by it….
Last edited by Montrealcorp; 08-05-2021 at 04:58 PM.