Typical U.S. full-time salary would be $102k if wages had kept up with growth

Re:Typical U.S. full-time salary would be $102k if wages had... by PaulDavisThe1st on Sunday September 27, 2020 @07:17PM (#24611033)

>That's the way it works in our system, which finds wages through supply and demand, which is a law of nature.

Is this 8th grade economics? Consider a nation that has strong tariffs on imported goods. Consider another nation that has major obstacles to the investment of foreign capital, and lots of cheap labor. Now consider a political campaign (it doesn't look a campaign, but it is) to remove the tariffs and allow capital to move freely from the first nation to the second.

Result: dramatic changes in the first nation's wages, at least for work that gets moved to the second country.

Remind me again which law(s) of nature is involved here.

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Re:Typical U.S. full-time salary would be $102k if wages had... by gridlockd on Monday September 28, 2020 @05:01AM (#24614552)

None of this contradicts what I said.

In your example, labor supply for the first country has effectively increased while demand has not. In effect, wages must fall in that country.

However, there is now increased demand on that cheaper labor, so those wages must rise, given a limited supply.

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