Inflation Watch - If labor costs increase for railroads, which ship supplies across the nation, the additional costs will ultimately be paid by the end consumer, right?

submitted by In-the-clouds from qu.ax

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[–]Canbot 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (4 children)

Shipping costs are not a function of wages. Businesses set thier prices based on market forces, always trying to maximize profit. That means that the costs are as high as the market can bear. This framing is corporate propaganda intended to sway the public into being against wage increases.

Inflation is the result of money printing. Inflation causes prices to go up. Inflation is a pay cut for all wage earners. It is only right for wages to increase along with Inflation. However, Inflation rates are heavily manipulates and lied about. The only honest way to measure inflation is to look at the cost increases to consumers. Railroad wages should go up in proportion to shipping costs. That is the only fair way to do it.

[–]In-the-clouds[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (3 children)

Where does the money to pay wages come from?

[–]Canbot 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

That's an overly simplistic understanding of business. If you reduce it to just wages and just consumer prices, forget the other 99%, then of course you are forced to make a lot of incorrect assumptions.

[–]In-the-clouds[S] 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

You make the source of wages sound so mysterious. But you still did not answer the question.

[–]Canbot 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

You keep asking because you still don't understand what I wrote. Try re reading it.