[Vision2020] wages and inflation

[Andreas Schou]

On 1/13/06, Donovan Arnold <donovanjarnold2005 at yahoo.com> wrote:
>
> Stephen Cooke writes:
>
> "Wages can increase at the rate of productivity increase
> for either a company or a nation without causing inflation."
>
> Since Wal-mart stock (value)has declined, should wages also
> not decline at Wal-Mart, based on your economic model Stephen?
>
> Stephen, are you willing to state that requiring all employers
> in Moscow to pay the livable wage of $10 an hour will not cause
> inflation?
>
> No.

But indexing the rise in minimum wage to yearly estimated productivity gains
would not in fact cause inflation.

-- ACS
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