The bursting bubble is hard to calculate. The increase of the minimum wage over a 2-4 year period will adjust to the general labor force. The people who are used to living and making a multiple of the minimum will generally demand the same multiple, that is to say they will not be content with the same dollar increase but if they were making 200% of the old minimum wage they will not be happy until they are making 200% of the new minimum wage. So where they were making $15 before they will want $30 now. I remember when minimum wage went from 0.75 to 1.15 the prices adjusted the ones making around $2.50/hr in about 2-3 years did in fact demand just that. During the same timeframe new residential construction went from $9/SQ ft to $15-$16/SQ ft.. the bubble bursting could in a large part be simply the appearance of a devaluated $. A used vehicle will go from today's price to scrap value is a few years. The only variable is the # of $/month will be greater because of the supply/demand adjustment. At what price per gallon will the population park their ice vehicles $10? $20? $100? And what will be minimum wage be? I think things will get much worse and electric bicycles and tricycle's will become quite common.Agreed. The overprice bubble will burst eventually, but I agree with your timeframe. Crazy times we are living in.
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