"DSK" wrote in message
...
Starbuck wrote:

Doug,

If we raised everyone salary 25%, the net income gain in spending power
would be 0%.

???

You should try and grasp the concept of "marginal rates of change."

If everybody's salary was raised 25% in an instant, and prices remained
constant *at that same instant* then there would very very definitely an
increase in "spending power." It would taper off as prices rose, but
probably would take a while to reach 0.0 if indeed it really did
(increased spending tends to increase investment in production which tends
to increase technology etc etc).

It's not quite the Red Queen's Race, but it's close.

I can see you're another economist wanna-be... did you get your tremendous
expertise from the same "Everything You Need To Know About Economics In
One Easy Lesson" website as that last joker?

DSK


A 25% raise in all salaries would be reflected in prices in about 10 days.
And the net gain would be a minus %. Bracket creep on tax charts. And how
are you going to raise salaries, without raising prices concurrently?