Correct. More money in wages means more spending means more demand means higher prices means workers demand more money in wages means more spending means…
And now you know what what a wage-price spiral is.
Are you saying people would just keep buying more and more bananas as wages go up, driving an unprecedented banana price explosion? I wonder what people will do with all their bananas that they’re gonna be buying? Cause that’s how stupid that argument is.
They pay undocumented immigrants less. Documented immigrants can’t be paid under the table the same way. It’s also important how much immigrants raise demand. They need houses, clothes, food, etc.
It might be region dependent then. In my neck of the woods foreign workers are specifically brought in to work the minimum wage jobs that no local would work for the low pay and bad treatment. They’re really taken advantage of as their ability to stay in the country is tied to their employer (often their employer is even their landlord too) and it’s all on the books and legal, but suppresses wages while also raising demand so prices go up despite the stagnating wages.
I guess we may be talking about different things as temporary foreign workers aren’t technically immigrants? It’s meant to be temporary I guess, but even if they don’t get their permanent residency if they’re swapped out for a new person to abuse the effect is the same or worse.
Correct. More money in wages means more spending means more demand means higher prices means workers demand more money in wages means more spending means…
And now you know what what a wage-price spiral is.
Are you saying people would just keep buying more and more bananas as wages go up, driving an unprecedented banana price explosion? I wonder what people will do with all their bananas that they’re gonna be buying? Cause that’s how stupid that argument is.
I haven’t even had my whole first coffee yet, I’m not nearly prepared for this level of…I don’t even know what.
So here: 👍
Happens. Thanks 👍
Which is incidentally why immigration is good for the economy too.
Don’t companies tend to pay immigrants less? I could see this having the opposite effect and suppress wages
They pay undocumented immigrants less. Documented immigrants can’t be paid under the table the same way. It’s also important how much immigrants raise demand. They need houses, clothes, food, etc.
It might be region dependent then. In my neck of the woods foreign workers are specifically brought in to work the minimum wage jobs that no local would work for the low pay and bad treatment. They’re really taken advantage of as their ability to stay in the country is tied to their employer (often their employer is even their landlord too) and it’s all on the books and legal, but suppresses wages while also raising demand so prices go up despite the stagnating wages.
I guess we may be talking about different things as temporary foreign workers aren’t technically immigrants? It’s meant to be temporary I guess, but even if they don’t get their permanent residency if they’re swapped out for a new person to abuse the effect is the same or worse.