Over the past 20-30 years, what changes have occurred that now make it necessary for many households to have two incomes to stay afloat?
In: Economics
We are all familiar with inflation. Increase the amount of money available and the price of everything goes up. Specifically businesses raise their prices and can get away with it.
The converse is also true. Increase the supply of something and the price goes down. Once families could have two incomes the supply of labor is doubled. So the price of labor went down. Businesses have been able to lower wage rates in real terms because of the extra supply of labor.
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