Huh, My Econ 101 Professor was right:

Rising wages are leading to rising costs…..even in the lower echelons of service jobs.

Funny how that works. Wages go up, costs go up,….so prices go up. Simply inflationary, and no net gain for anyone.

Citing labor costs, McDonalds raises prices.


My Econ Professor onceĀ  pointed out that “Menial labor” jobs paid just about enough to pay for a meal food for a day after 1 to 2 hours work….and that had been the case since Roman times, through the present…I doesn’t matter what the currency is, nor what the job was. The ratio was fixed. Devaluing the dollar by raising wages causes prices to go rise…but the COST, measured in hours worked, stays the same…..

2 thoughts on “Huh, My Econ 101 Professor was right:

  1. Yep, that has always been true, through feast and famine… sigh

  2. Even more elementary is how bloody aggravating it is that apparently most people do not have even a fundamental grasp on the difference between cost and price.

    My personal experience is those working in the financial department of a mid-size city are included in the aforementioned people, not to mention my past employees.

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