Message from @aradesh
Discord ID: 582702730984816641
Have you seen prices in Switzerland?
and compare them to the high wages?
How do they compare with Purchasing power parity?
Look at their taxes
Prices rise with wages. You think shop owners and businesses are going to not want to cash in?
Ok i'm just theorising here, now the EU parliament has proportional representation within the parliament. What decides this proportion ?. Is it population ratios between each country and if so, does it mean Germany is trying to rig the game by importing as many people into it's country to gain more and more of that proportion ?.
I don't think you even know what PPP is
Okay look at California gasoline @Capitán Alatriste
If you hold a business and you see people earning more, you are going to rise prices, as well as to cover rising expenses for your workers
@Capitán Alatriste Marginally, yes
I know what PPP is, and it is determined by wages
But not proportinally
They get fucked in Califkrnia with insane gas prices around $5.45 while ours is $3.45
@GR0MIT i'm pretty sure they're too shortsighted to want to boost their population. it's more just that they want cheap labour, and lots of people are making money from human trafficking
PPP is more than wages
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
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