The general problem comes down to the ratio of ( minimum wage ) / ( price of oil ) over time.
When Bush Jr became president, this ratio was ~ ( 6 ) / ( 12 )
Within the first 2 years, it had reached ( 6 ) / ( 150 )
25 years later it has varied from ( 6 ) / ( 85 ) and ( 6 ) / ( 50 ish )
In order to have a stable consumer economy, this ratio needs to be stable or rising, not declining.
Before you contest my use of the minimum wage for this, a lot of front line workers in the mid / upper 20s are being paid the fast food minimum wage, even those doing fairly techie assembly line work. As an example, a 1 U data center server components might be worth $ 50K each, and the total labor content is ~ $100 per unit. The labor cost is not material even if wages doubled.
If that problem does not get solved, no one is going to be able to buy anything. It isn't a cost issue, it is a wages issue.
When Bush Jr became president, this ratio was ~ ( 6 ) / ( 12 )
Within the first 2 years, it had reached ( 6 ) / ( 150 )
25 years later it has varied from ( 6 ) / ( 85 ) and ( 6 ) / ( 50 ish )
In order to have a stable consumer economy, this ratio needs to be stable or rising, not declining.
Before you contest my use of the minimum wage for this, a lot of front line workers in the mid / upper 20s are being paid the fast food minimum wage, even those doing fairly techie assembly line work. As an example, a 1 U data center server components might be worth $ 50K each, and the total labor content is ~ $100 per unit. The labor cost is not material even if wages doubled.
If that problem does not get solved, no one is going to be able to buy anything. It isn't a cost issue, it is a wages issue.
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