I think both are shit because they both spy on you

Chinese localities are setting their wages to a state sanctioned minimum, that's the economic reason wages are growing in China

whether that growth is actually worth anything I am not sure

i am flabbergasted at your understanding of economics

global markets are pretty complex

if you think minimum wage means anything you're sorely mistaken

it's true

There is a difference between wages and "real" wages

nominal vs real

Yes

nominal

real wages in ancapistan is determined by the value of a big mac

how many big macs do you make per hour?

how many big macs for a pencil

uh

who needs wages when there's no money

i'm a brainlet when it comes to economics so pls guide me through this
>poor country is abused for cheap labour
>cheap labour brings in lots of money which makes poor country not poor
>country outsources cheap labour to other poor country and starts producing quality goods
>cycle repeats

2 pencis for one big mac

what happens when there's no poor people left to exploit

it would never work

because you cant store big macs

@Punished Tinker Tom

@Double Negative Then the company is forced to pay it's workers more

and save them up

*Wage increases are partly government-driven. China’s 12th Five Year Plan aims to raise the national minimum wage by an average of at least 13 per cent each year, faster than in previous years. Localities are free to set their wages above the national level. In fact, provinces have increased minimum wages by an average of 16 per cent this year, following a 20 per cent increase last year. Shenzhen province in the Pearl River Delta tops the list in terms of minimum wage levels, with minimum monthly pay of CNY1,600 (USD258). This has forced more than half the companies in our survey to raise wages more than they had planned, particularly for the least skilled part of their workforce.*

well shit

prices of luxuries today are only affordable because they use cheap labour

I was looking forward to a big mac based exchange system

I don't know why he's listing nominal gdp

prices would skyrocket if the cheap labour went away

it literally means nothing

@weebnationalism What do you think of this weeb

do you think the prices would skyrocket

prices skyrocketing means nothing really

there are no prices when there's no money

the company is forced to raise the prices on their products because they no longer get the profit margin that they used to, because the cheap labour is gone

so you have more money, but also spend more money

would it not cancel out?

So it balances out

fun fact the price of a single loaf of bread has stayed around the same for over 70 years

when the government increases minimum wage, prices will adjust accordingly and everything will remain the same apart from the new purchasing power of the dollar