one burger contains as much as 3-5c worth of flour (up from 1-2c in 2006!) 5c of cheese, 5c of beef, some lettuce and mustard, etc. The bulk is LABOR.
–You're considering only variable costs, my friend. There are fixed costs too: store's rent (or the opportunity cost if you own), insurance, etc. Anyways, thanks for the entertainment and going into the minutiae of burger selling. I could have said "$300 airfare" or "$0.75 pen", etc.
Average nominal incomes can't go up unless either the money supply goes up (printing) or the rate at which people trade (velocity of money) goes up. Money you're paid with has to come from somewhere. If the amount of money in the economy is constant (…)
–Aha! You assume that the money supply is constant. Now your burger example starts to make more sense. But that's an enormous IF you use. The metaphorical printing presses are working at full steam! Haven't you read the news this week? For instance, see:
