With the gas keeping going up in price, everything else is going up in price. How about salaries?

Question

With the gas keeping going up in price, everything else is going up in price. How about salaries?

Answer 1

Labor generally endures negative impact or diminished priority as prices increase.  Wealth accrues to owner of land or business upon the land or location.  Rent increases, price increases while labor(salaries) tends to decline.

Answer 2

it will go up if the workers ask

Answer 3

There is always inflation in the economy, but the problem with inflation is when it is unpredictable & affects goods or services differently.

Now generally, the overall production in the economy increases by about 2% to 4% a year. So, in theory, if your income increases by about 2% to 4% a year, you will be able to buy about the same amount of goods or services & notice little to no difference in the amount you can purchase.

According to the U.S. Census Bureau, the median income for all incomes in the U.S. in 2000 was $42,151. The median income for all incomes in the U.S. in 2006 was $48,201. This accounts to roughly a 2.3% increase in median income per year, so this is within the 2% to 4% range, so things should be good.

The problem however with gasoline is that over the same time period, prices have not behaved within this 2% to 4% range. The average price of gasoline in 2000 was about $1.52 a gallon in the U.S. So, putting the projected price for gasoline at the high end of the range at 4% would predict the price of gasoline in 2008 would be about $2.08 a gallon. The problem is that the price of gasoline from 2000 to 2008 has increased $4.00 a gallon, which is roughly a 13% increase in price.

So, yes, you are correct. Salaries are going up. But unfortunately, salaries are not going up as quickly as gasoline prices.

Answer 4

that is one thing that will not go up