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

@galesteppes Dunno. Sometimes I'm sure it's good, and sometimes its shit.

I'm done. I hope Europe burns in hell

so why do prices increase when wages don't <:thronk:441701565607444482>

@galesteppes<:sargoy:382978736053551104> <:sargoy:382978736053551104> <:sargoy:382978736053551104>

But fuck forcing people to pay $15 an hour

That was my question but I'm the retard @galesteppes

They kinda forgot about me.

@EnderOctanus Well to you it's all magic anyways lol

https://www.johnlocke.org/update/the-myth-of-wage-push-inflation/

In the long run yes... putting more money into the system will cause prices to rise.

A) If businesses see that people will have more money, they will rise prices in order to cash in on it

B) As wages rises, demand rises, and naturally the supply will rise to meet this new demand at a higher price equilibrium

C) as wages rises, so does expenses due to employment. Companies need to cover these costs so they raise prices

Nah I just don't think I should take any of you to be reliable sources.