"DSK" wrote in message
...
Bill McKee wrote:
A 25% raise in all salaries would be reflected in prices in about 10
days.

Really? Across the board? Evenly distributed in all consumer categories,
or will staples/necissities go up faster?


And the net gain would be a minus %.

If that were true, then the average standard of living would always tend
to decrease. I guess the fact that we live in air-conditioned houses, not
caves, hasn't been noticed by you?


Productivity has gone up with wages. You are only going to raise wages.
Therefore all prices have to follow directly or greater.


... Bracket creep on tax charts.

Are you under the impression that being nudged into the next higher tax
bracket means that you now have less money?


If you raise all wages 25% and the prices will have to raise at least 25% to
cover the extra costs, yes bracket creep will leave you with less spendable
money. Example (ignore real tax rates). You make $100 / week. You get the
25% raise to $125 / week But prices have gone up 25% also. At $100/ week
you paid 20% of your money in income taxes. Leaving you with $80. With a
25% increase in income your tax bracket is now 22%. Or $27.50 Leaving you
with $97.50 or a 21% increase, while prices will raise 25%.

... And how are you going to raise salaries, without raising prices
concurrently?

The same way President Bush raises expenditures... astronomically...
without raising revenue.

DSK


And you go into bigger debt. Just like this Congress and the President are
doing. Include the Congress, as they are the only ones to allocate money to
spend. And that includes the Democrats and the Republicans. Those same D's
and R's who passed a transportation bill with $27 billion, that is with a
capitol "B", load of pork in it. Yes it was voted for by the Boxer's,
Pelosi's, Feinstein's, Kennedy's, Kerry's, etc. of the Congress as well as
the Republicans.