Wage Inflation

I had heard of wage inflation before. One of the guys at lunch finally give the simple example that made it click in my head. here it is.

There are only so many resources to go round. Not everyone can afford everything all the time.

Year 1, you make $10 and every one else makes $2. You will be the target for all the sales of high end stuff.

Year 2, you make $12 and every one else makes $8. Suddenly you do not have the attention of every high end product.

This is what is happening with places like China and India. They are experiencing wage inflation. The only place left seems to be Africa. Until we find some broke ass Martians, that will pretty much be the end of hyper groth markets.

People wonder what it is going to be like when the wage race levels out a bit. What happens when pretty much everyone can afford what they need and or want most of the time? Will there be wars over the last cup ofr joe at Starbuck’s? There has always been disparity between people from one place vs another. There just might be a global stagnation as people all over the place figure out that there is just nothing left to fight over.

Maybe we will find space travel just in time to guarantee the inequality we have grown up with over the last several millennia.