What true prosperity is

Sep 2018
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For the first time in the Index, Western European prosperity is higher than in North America, albeit marginally. Western European prosperity remained broadly constant; but North America fell faster than any other region, due to an increase in the number of homicides and greater societal pressure on citizens’ freedom of religion.
Legatum Prosperity Index 2017 :: Legatum Prosperity Index 2017
Rankings :: Legatum Prosperity Index 2017
Living standards:
Gross domestic Product is the aggregate value of goods and product production. The nation's GDP per capita, relative to its median wage, is a god indication of what the nation produced and to what extent was it distributed among the nation's population. It indicates the financial condition of the nation's middle income earners.

I consider a nation's economic policies should strive achieving the greatest sustainable purchasing power for it nation's median wage. That would be the greater national living standard.

It is mathematically impossible to improve the purchasing power of the median wage, unless we improve the purchasing power of federal minimum wage rate. That's why I'm among the proponents for a higher minimum rate that's annually adjusted to retain its purchasing power.

Refer to
https://defendingthetruth.com/threads/democrats-should-immediately-confront-the-minimum-wage-rate.105756/
and
Federal minimum wage rates’ effects upon prices and employees’ purchasing powers

Respectfully, Supposn
 
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Sep 2015
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Living standards:
Gross domestic Product is the aggregate value of goods and product production. The nation's GDP per capita, relative to its median wage, is a god indication of what the nation produced and to what extent was it distributed among the nation's population. It indicates the financial condition of the nation's middle income earners.

I consider a nation's economic policies should strive achieving the greatest sustainable purchasing power for it nation's median wage. That would be the greater national living standard.
I agree with most of this

It is mathematically impossible to improve the purchasing power of the median wage, unless we improve the purchasing power of federal minimum wage rate. That's why I'm among the proponents for a higher minimum rate that's annually adjusted to retain its purchasing power.

Refer to
https://defendingthetruth.com/threads/democrats-should-immediately-confront-the-minimum-wage-rate.105756/
and
Federal minimum wage rates’ effects upon prices and employees’ purchasing powers

Respectfully, Supposn
But.....Now you just described a wage-cost-push spiral
 
Oct 2009
510
88
Cliffside Park, NJ
I agree with most of this
But.....Now you just described a wage-cost-push spiral
Excerpted from:
Federal minimum wage rates’ effects upon prices and employees’ purchasing powers
... The portions of product's costs due to various wage rates and the portions of various wage rates due to the federal minimum wage rate are all variable fractional factors that are less than one. Any increased prices they pay that due to inflation may be attributable to the federal minimum wage rate is significantly less that those minimum rate's beneficial effects upon their employment derived incomes.

Employees and their dependents net benefit from the federal minimum wage rate. The working poor are (proportional to incomes), the greatest beneficiaries of the minimum wage rate. All persons that benefit from entities (such as commercial enterprises) that indirectly benefit due to employees' improved financial conditions are also indirect beneficiaries of the federal minimum wage rate.

Respectfully, Supposn
 
Sep 2015
9,379
5,220
Lehigh Valley Pa.,USA
Excerpted from:
Federal minimum wage rates’ effects upon prices and employees’ purchasing powers
... The portions of product's costs due to various wage rates and the portions of various wage rates due to the federal minimum wage rate are all variable fractional factors that are less than one. Any increased prices they pay that due to inflation may be attributable to the federal minimum wage rate is significantly less that those minimum rate's beneficial effects upon their employment derived incomes.

Employees and their dependents net benefit from the federal minimum wage rate. The working poor are (proportional to incomes), the greatest beneficiaries of the minimum wage rate. All persons that benefit from entities (such as commercial enterprises) that indirectly benefit due to employees' improved financial conditions are also indirect beneficiaries of the federal minimum wage rate.

Respectfully, Supposn
Fine.......but it is still an inflationary wage-cost-push spiral..... Like all inflationary spirals, sooner or later it adjusts to the normal...
 
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the quality of life in a nation is not just determined by the amount of usless shit people have lieing around
 
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Fine.......but it is still an inflationary wage-cost-push spiral..... Like all inflationary spirals, sooner or later it adjusts to the normal...
JimGorn, the U.S. Bureau of Labor Statistics publishes the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) each month. Each year, the Social security Administration updates the monthly retirement benefits they distribute, to reflect annul cost of living changes within the previous year. Those updates are based upon the previous year's annual CPI-W.

The CPI-W doesn't cause wage inflation, but it does report the wage inflation that has occurred. The increased retirement benefits doesn't cause inflation, but the increase is based upon the increases of the CPI-W, which was based upon labor markets, which are based upon general conditions of our aggregate economy.

Social Security retirement benefits contribute something to the U.S. dollar's rate of inflation, but they're not among the primary causes of wage inflation.
On the contrary, since it reacts as a follower of the CPI-W, which is a follower of the labor market, and it takes an entire year before its changes are enacted, Social Security retirement benefits are much less a cause, and much more a victim of the U.S. dollar's inflation rate.

If the United States is to continue to be a democratic republic, I'm confident that well within 20 years, the federal minimum wage rate's purchasing will be substantially increased and thereafter be annually managed to retain that purchasing power.

Spiral inflation usually slow down to what you describe as normal. But there are examples of national currency's inflation otherwise continuing to accelerate with disastrous
economic consequences.

Respectfully, Supposn
 
Dec 2018
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I agree with most of this



But.....Now you just described a wage-cost-push spiral
The wage-price spiral is a macroeconomic theory used to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. The wage-price spiral suggests that rising wages increase disposable income raising the demand for goods and causing prices to rise.

I'm wondering.. Purchasing power...

From/to their own retailers or from outer wholesalers/distributors, etc? ....

If exporters increased their prices, they might lose 'business'. And so the upper crust of the monies holders are among the 'goods' holders, both the sellers and purchasers. And from this combination/relationship, the others who are not in this business model are as the everyday 'consumers' which puts monies into these businesses. And with their 'contribution' of monies, the business continues with their 'selling and buying' to provide for the consumers. But purchasing power is for the consumers more so than for the wholesalers and retailers seeing that each Country can charge different amounts on same or very similar products and services. An apple (fruit) in California might be 5 times the cost than an apple in Spain, for example and only using two separate locations as a referential idea and not a fact.

So if the apple which is bought and/or sold in California and Spain come from the same place, then why would they cost differently within those two places? And so the 'mark up'. A certain % mark up to the original buying price within each separate place to their own median wage earnings could be how a certain product is 'marked up' to stay 'level' to the World's fair business practices.

For example. If the average earning or GDP in California is X amount and the average earning or GDP in Spain is Y amount, but the purchase price of the apple was N amount, then the mark up, let's say at 30 percent would have to take into consideration the average earning GDP to cost of living per month to average earnings and put the amount of the apple to be purchased within that 'group'. I can make 2000 dollars per month with a cost of living at 1200 dollars per month (example only) leaving 800 dollars for savings and 'others' costs. So the cost of the apple should fall within this 'budget' in where I earn my living income. But for the other place, I can make 1200 dollars a month with a cost of living at 600 dollars a month which would leave me 600 dollars for savings and 'others' costs. And the apple price should fall into this 'budgeted' group. But the original apple purchased were sold out from the same distributor which might have charged different amounts to the different locations.

So basically, although the apple is farmed and grown and distributed from a particular source, let's say, the way the 'mark ups' and retail prices are set to be within those 'budgeted' groups only shows the consumer how to 'budget' their own monies. All these different Countries' prices with their average earnings and GDP only, in actuality, in my opinion, tries to keep the consumers in the 'know' of how to 'budget' their own monetary 'cash' or income within that particular place. But if I was to move from California to Spain with the same 2000 dollars a month I received in California in Spain, then I would consider the apples in Spain to be less than the price of apples in California.

So the 'purchasing power' might actually be gauged by/to those Countries with the 'highest' prices being charged for the same product elsewhere.

The purchasing power can be seen similar to 'traveling' opportunities. The more purchasing power you possess, the more 'travel' you can do within the 'foreign exchange 'rates''

But the apple (fruit) is the same or very similar apple in both places.


That's what I'm thinking. And that is why I think you are correct when you said, "But.....Now you just described a wage-cost-push spiral".....

Or at least I'm on the 'right' path.....

And/but of course, there's room for 'better knowledge' to numbers and ratios and distributions of the same(s). etc....

But thanks for the 'teachings' by such short 'truths', to numbers and ratios and distributions of the same(s), etc.... :)

"But.....Now you just described a wage-cost-push spiral".....


--------------------------------------

There is the world with its glory and there are the others with theirs. Why does the world's glory seem to dominate over all the others?

Why all the peering eyes to see the who's who? Look to the College and Universities' list(s) of notable 'who's who' to praise and covet after.. But I wouldn't recommend this, of course.

Loyola University. Started by the Jesuits. There are many. There is one in Chicago called Loyola University and there is another 'Loyola' in Los Angeles named Loyola Marymount. The Chicago 'Loyola' has some notable graduates in several sectors of the U.S. The L.A Loyola Marymount has some notable graduates in a particular 'sector' in the U.S. Although they both are 'Loyolas', the one in L.A seems to cater to a certain 'sector' for the 'who's who' in their list.


I'm not sure if you are 'religious' in any way, but how could this be applicable to life and macroeconomics?

1 Corinthians 14:34-36 "Let your women keep silence in the churches: for it is not permitted unto them to speak; but they are commanded to be under obedience, as also saith the law. 35And if they will learn any thing, let them ask their husbands at home: for it is a shame for women to speak in the church. 36What? came the word of God out from you? or came it unto you only?"


If hell hath no fury like a woman scorned, could man have no peace like a woman causing shame?


Proverbs 21:9 "It is better to dwell in a corner of the housetop, than with a brawling woman in a wide house."

Psalm 84:10 "For a day in thy courts is better than a thousand. I had rather be a doorkeeper in the house of my God, than to dwell in the tents of wickedness."

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I'm sorry to add hurt to injury but what about the purchasing power to drugs manufactured/distributed and illicit? Let's not forget they are also part of the 'consumer' clientele by which their local retailers receive the monetar(ies) to be able to continue in their 'business(es)'.
 
Last edited:
Dec 2018
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U.S
I'm sorry to add hurt to injury but what about the purchasing power to drugs manufactured/distributed and illicit? Let's not forget they are also part of the 'consumer' clientele by which their local retailers receive the monetar(ies) to be able to continue in their 'business(es)'.
Hence; paper, bills and consumeri(sms).

Or it is; sex, lies and video tapes?
 
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