tag:blogger.com,1999:blog-21503568.post6752368683196390470..comments2023-11-03T06:32:28.410-04:00Comments on Staring At Empty Pages: The race for prosperityBarry Leibahttp://www.blogger.com/profile/14205294935881991457noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-21503568.post-60752365846067650372011-09-03T08:39:44.978-04:002011-09-03T08:39:44.978-04:00Sure, Andy, but performance-based raises and cost-...Sure, Andy, but performance-based raises and cost-of-living-based raises are usually bundled together. It's also more typical to get a performance-based raise because you're “doing a good job” than it is because you're actually, measurably, <em>n%</em> more productive to merit your <em>n%</em> raise.<br /><br />Unions often negotiate standard annual pay raises: if you keep your nose clean and do your job, you get the raise, year after year.<br /><br />And as long as wages mostly keep up with prices, we don't really consider it damaging inflation. We're just all staying even as the numbers get bigger.Barry Leibahttps://www.blogger.com/profile/14205294935881991457noreply@blogger.comtag:blogger.com,1999:blog-21503568.post-63620294476625319752011-09-03T00:44:55.929-04:002011-09-03T00:44:55.929-04:00If you assume that the 10% raise is just for the p...If you assume that the 10% raise is just for the passage of time, then it leads to inflation as you describe. But if the 10% raise is because you are 10% more productive (or more), then you get more dollars andy your prosperity actually improves. COLA is just for subsistence; raises should recognize increased value.scouter573https://www.blogger.com/profile/10617089494446058172noreply@blogger.comtag:blogger.com,1999:blog-21503568.post-29101032150047546852011-08-20T18:20:48.518-04:002011-08-20T18:20:48.518-04:00Oh, indeed: as I say in the footnote, it's mor...Oh, indeed: as I say in the footnote, it's more complicated. The complications aren't limited to what's in the footnote, or even what you've added. And that all makes it even less possible for anyone in the middle or the bottom to benefit in any real terms.Barry Leibahttps://www.blogger.com/profile/14205294935881991457noreply@blogger.comtag:blogger.com,1999:blog-21503568.post-89633849903262491032011-08-20T12:13:09.837-04:002011-08-20T12:13:09.837-04:00You ignore a second-order effect...if tax rates ar...You ignore a second-order effect...if tax rates are not indexed to inflation, then as everyone moves up the salary curve they break into higher tax brackets or AMT zones and end up losing out. There is a related opposite effect as FICA taxes phase out at higher salaries.Brenthttps://www.blogger.com/profile/13094923391435871078noreply@blogger.com