[Vision2020] wages and inflation

[Donovan Arnold]

 "But indexing the rise in minimum wage to  yearly estimated productivity gains would not in fact cause  inflation."-Andreas Schou
  
 Really? Humm, I find that  surprising. Especially considering that the retail market had a 48%  gain in productivity in 2004 over the yearly average since 1987. I  would think an increase of nearly 50% in wages in retail would cause  inflation through the roof. Especially since those gains were not the  result of the unskilled labor force, but because of technological and  business model innovations in the retail market created by Wal-Mart. 
  
  -DJA

Andreas Schou <ophite at gmail.com> wrote:  

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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