- Capitalism and Alternatives -
They fall too
Posted by: Gee ( si ) on March 22, 1999 at 13:13:43:
In Reply to: Bwahahaahahahaha posted by Red Deathy on March 22, 1999 at 12:20:46:
: Erm, well, see some of my responses to Gee, but can I ask, re: the page you reffed- if prices are falling, and wages are a price also, wouldn't the price of wages be falling with them? Or are wages mysteriously exempt?
Yes they fall too. First, without income taxes (and various other taxes) gross income rates would fall with prices.
Because of the expansion of capital (in the form of new technologies, greater opportunities, choice and abundance) in an unshackled society net incomes would buy more than net income buys in a mixed economy. This does happen slowly in a mixed economy - compare the bundle of goods a 50s family bought to one a 90s family buys.
ie, you'd be better off, and have more chances of becomeing even better off.