Why don't salaries increase like gas prices and taxes?

Question

Why don't salaries increase like gas prices and taxes?

Answer 1

my teacher told me eventually salaries will increase to keep up with gas prices and taxes, that means minimum wage will go up too. i mean if salaries didn't increase slowely, then we'd all be homeless in the next five years!

Answer 2

Over time, they have.  For any given year, not necessarily, especially with the huge increase in gas prices over the last few years.  Did you wonder during those years when gas prices were pretty constant why the price of gas didn't go up as much as salaries?

Answer 3

Because the high prices are a background to the economic stimulus package... where as the $600 was just a fascade of the real intention.

Don't worry, it's not a negative thing, just a sour approach

Answer 4

Im from the UK... they do raise it

Answer 5

Because if employers had to raise salaries as much as gas prices have gone up in the last year or so, they would lay off almost all their employees to avoid paying the higher salaries!

Answer 6

because gas decrease and the country needs the money.. but jobs never decrease !!..

Answer 7

They will. America has been spoiled so they don't know how to keep up with the raising gas prices. Every other country in the world pays like $6 a gallon for gas and they're getting along just fine. I think in the next 5 years, America will improve their public transportation system to keep up with the prices, just like how it is elsewhere in the world.

Answer 8

With gas prices and taxes increasing be thankful your salary isn't cut.  If a business if faced with increased costs other things have to be trimmed at times.  The business can raise prices but this generally means fewer sales so it starts the old death spiral.  When the tax people and everybody else kill the goose that lays the eggs then they too will exist no longer.  

Answer 9

they try in the U.S. every year there is cost of living raises..these dont always help because the rates of gas and food etc go up very quickly as we all know. But if everything just keeps going up we will all be paying $20.00 a gallon but making $100 an hour which basically would be the same as we are now only the amounts would be higher....no way to control things like that but its a nice thought.

Answer 10

employers want all the profit.  

Answer 11

I guess it depends on your job

Answer 12

Business owners have expenses too.  Just because our costs of living go up does not mean that the owner of our company should pay for our increased expenses.  All it will do is lower the value of the dollar and prices will continue to rise.

If we raise salaries (like continuing to increase minimum wage), you are giving everyone else a paycut.  What you used to be able to buy for $5 now sells for $10.  Companies can't afford to pay their employees a higher salary, and will eventually go out of business if they don't significantly raise their prices. Raising salaries to even out against raising prices only start a vicious cycle that has no end.  Increased prices on everything, companies going out of business, leading to layoffs, leading to foreclosures and more bankruptcy filings than ever.

That is why every single financial expert int he country tells you to live below your means, saving at least 10-20% of your income in case something happens.  But we are too greedy, selfish and stupid to listen.  Then we expect the government to bail us out because we screwed up, again.