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<p>[QUOTE="GDJMSP, post: 707224, member: 112"]If you are saying that wage increases do not always equal price increases you are correct. However, prices and wages do always move upwards. At various points in time wage increases sometimes outpace price increases and price increases sometimes outpace wage increases. Very seldom are they ever equal though.</p><p><br /></p><p>But both <b>DO</b> continuously move upwards because both are linked forever to each other. That's how the free market system works.</p><p><br /></p><p>People want and expect wage increases over a period of time - quite often they demand it. And eventually they are given those increases.</p><p><br /></p><p>But that means that all goods and services then go up in price because it now cost more to produce them due to the wage increases.</p><p><br /></p><p>Then a bit later, as those increased prices for good and services take effect on the people - they again start to demand wage increases again. And the cycle continues forever because each is 100% dependant upon the other.</p><p><br /></p><p>Using myself as an example. When I first entered the workforce as a teenager I used to get paid a whopping $1.25 an hour. So did just about every other teenager there was at tha time. When I quit working this year I was making $45.00 per hour. </p><p><br /></p><p>Now those ends of the scale may not be the average for all people in this country, but there are certainly a whole lot of people who experienced very similar wage growth. And there are plenty who experienced even more growth than that.</p><p><br /></p><p>Now you please point out to me 1 thing that has increased 40 times its cost in the same time period.[/QUOTE]</p><p><br /></p>
[QUOTE="GDJMSP, post: 707224, member: 112"]If you are saying that wage increases do not always equal price increases you are correct. However, prices and wages do always move upwards. At various points in time wage increases sometimes outpace price increases and price increases sometimes outpace wage increases. Very seldom are they ever equal though. But both [B]DO[/B] continuously move upwards because both are linked forever to each other. That's how the free market system works. People want and expect wage increases over a period of time - quite often they demand it. And eventually they are given those increases. But that means that all goods and services then go up in price because it now cost more to produce them due to the wage increases. Then a bit later, as those increased prices for good and services take effect on the people - they again start to demand wage increases again. And the cycle continues forever because each is 100% dependant upon the other. Using myself as an example. When I first entered the workforce as a teenager I used to get paid a whopping $1.25 an hour. So did just about every other teenager there was at tha time. When I quit working this year I was making $45.00 per hour. Now those ends of the scale may not be the average for all people in this country, but there are certainly a whole lot of people who experienced very similar wage growth. And there are plenty who experienced even more growth than that. Now you please point out to me 1 thing that has increased 40 times its cost in the same time period.[/QUOTE]
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