@aradesh Not a taxable thing, human trafficking.

High wage and a stable economy and currency make a high PPP.

Eh, not really

@GR0MIT no but there are probably enough influential people making money from the process to have some influence.

That is not a matter of fact though, there is more to it isn't there?

Price of goods in a region also determine ppp

Property values

Tax rates

And prices are for the most part determined by wages, very rarely do you have a situation of high prices and low wages

at least in the long run

short run perhaps as the markets adjust

How much does Switzerland have to pay in VAT when importing goods from neighboring countries?

I mean no. That wouldn't explain why we see prices for bread and milk fluctuate while salaries stay the same.

nothing since Switzerland is in the common market

They might he linked sure, but they themselves are not cause and effect

State imposed wage increases (ie minimum wage) generally cause inflation, but I don't remember seeing any study linking natural wage increase to inflation

@Fitzydog @Capitán Alatriste

@Ondsinet Correct

I'm still gonna Look for a stuft about that

Study

If your wage goes from $20/hr to $40/hr naturally, you might see milk increase from like $3/gal to 3.75/gal

You're still earing more relative to goods

Frankly I don't trust @Fitzydog either with economics because I have a theory. Anyone that thinks they understand economics is gonna have a bad time.

I distrust both of your views on principle alone lmao

That's a dumb theory

@Fitzydog @Capitán Alatriste

```Much empirical evidence suggests that wage increases do not lead to inflation. This paper demonstrates that a 2-sector dynamic general equilibrium model calibrated to the U.S. economy is able to explain this evidence. We quantify the effect of an increased wage-markup on the inflation rate in both the goods sector and the service sector. The mechanisms we emphasize and quantify are changes in relative prices and monetary policy. We find that our model is successful in explaining the empirical evidence. Quantitatively, the relative price effect is more important than monetary policy in mitigating the effect of higher wage-markups.```

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=906568

@Fitzydog And in the long run the markets will steadily increase prices with the massive influx of demand caused by the rise in wages, as well as supply push inflation (rising production costs, mainly that of employment)

Economics is such a young field, I have trouble believing we have anything really figured out when we struggle to predict market changes reliably. Unlike meteorology.

Weather prediction is still ass

@Capitán Alatriste I just gave you an example of inflation in regards to wages.

Look at it again, and rethink your position

@EnderOctanus @galesteppes meteorology developed after WWII <:triggered:382980748115968000> <:triggered:382980748115968000> <:triggered:382980748115968000>

Yeah but you know if you predicted that fucking hurricane or not don't you?

And over time, the prices will meet the wages.

This is pretty much classical theory

Bull fucking shit

You have no God damned clue how economics works in the slightest

Of course not

@Fitzydog I'm not gonna read the paper in depth because it's 1 in the morning but the synopsis seems pretty clear

So minimum wage is a crock of shit?

says some dude in the internet

@galesteppes Apparently, doubling wages means doubling the price of goods