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

@GR0MIT pretty sure it's population, yeah

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

@aradesh That'll be why then.

@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

@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