My argument is that there is Good I Wear Pink For My Aunt Shirt a perceived maximum value to most COGS and even if all go up it will balance out and consumers can change there buying habits to match the value of the increase on some COGS until the system corrects itself again because consumers buying habits will set the trends. Everything you are saying is right, I’m just thinking of how we break the cycle, I don’t need to throw numbers at you, it’s obvious the rich are getting richer and the fallout from the pandemic will create an even wider divide. If ever there was a time to do something drastic it’s now. You’re assuming that maximum value doesn’t inflate.
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Raising wages just too Good I Wear Pink For My Aunt Shirt raise wages will cause inflation, including the price of all goods. Not all at the same rate, but it’ll happen. Simply raising the floor doesn’t solve any problems. The rich will always get richer. What we NEED to do is incent them to take more risks. Investing more capital back into the economy and workforce – and the way to do that would be to REDUCE taxes on investments they make in startups and community businesses, and more heavily tax passively earned income. Want to leave money in banks to grow? Pay higher taxes. Want to invest it and take measured risks on new businesses, growing existing businesses, etc.? Pay lower taxes.
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