<p><a href="https://en.wikipedia.org/wiki/Wage-price_spiral" rel="nofollow noreferrer">Wikipedia describes:</a></p>
<blockquote>
<p>In macroeconomics, a wage-price spiral ... is a proposed explanation for inflation, in which wage increases cause price increases which in turn cause wage increases, in a positive feedback loop.</p>
</blockquote>
<p>Wages are the price for labour, which is one factor of production. But labour is just one of four factors. Can there also be profit-price spirals (entrepreneurship), rent-price spirals (land / natural resources) or interest-price spirals (capital)?</p>

CC BY-SA 4.0
2022-09-27T09:23:29.620Z
What is a "profit-price spiral"? Profit increases causing price increases?
VARulle
CC BY-SA 4.0
2022-09-28T08:48:48.530Z
Wage is the price of a factor of production (labor), profit is not the price of a factor of production, so there's no analogy here. Where does the profit part of the spiral then come from?
VARulle
CC BY-SA 4.0
2022-09-29T07:48:32.360Z
Didn't know that. What's the current market price for a unit of entrepreneurship in the US?
VARulle
CC BY-SA 4.0
2022-09-30T08:17:43.047Z
Prices are monetary amounts per unit so they have to refer to some unit of measurement, e.g. person-hours of labor or acres of land rented. If you can't define a "unit of entrepreneurship", then there doesn't exist a "price of entrepreneurship". And even if you managed to define such a unit, its price would definitely not be "profit", since this wouldn't make any sense. (E.g. an increase in profit would then increase the expenditure for entrepreneurship and hence the costs of production and therefore decrease profit...?) But of course you are free to cite a source to prove me wrong.
VARulle
CC BY-SA 4.0
2022-10-03T10:17:19.470Z
Sorry, but something like a "numerical unit" does not even exist... I think I'll give up this discussion.
VARulle
<macroeconomics><inflation>
Can there be profit-price spirals, or others?
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# Can there be profit-price spirals, or others?

(Asked by: username_0 on 2022-09-26)

[Wikipedia describes:](https://en.wikipedia.org/wiki/Wage-price_spiral)

> In macroeconomics, a wage-price spiral ... is a proposed explanation for inflation, in which wage increases cause price increases which in turn cause wage increases, in a positive feedback loop.

Wages are the price for labour, which is one factor of production. But labour is just one of four factors. Can there also be profit-price spirals (entrepreneurship), rent-price spirals (land / natural resources) or interest-price spirals (capital)?

**Tags:** macroeconomics, inflation
> **Comments:**
> **username_1**: What is a "profit-price spiral"? Profit increases causing price increases?  
> **username_1**: Wage is the price of a factor of production (labor), profit is not the price of a factor of production, so there's no analogy here. Where does the profit part of the spiral then come from?  
> **username_1**: Didn't know that. What's the current market price for a unit of entrepreneurship in the US?  
> **username_1**: Prices are monetary amounts per unit so they have to refer to some unit of measurement, e.g. person-hours of labor or acres of land rented. If you can't define a "unit of entrepreneurship", then there doesn't exist a "price of entrepreneurship". And even if you managed to define such a unit, its price would definitely not be "profit", since this wouldn't make any sense. (E.g. an increase in profit would then increase the expenditure for entrepreneurship and hence the costs of production and therefore decrease profit...?) But of course you are free to cite a source to prove me wrong.  
> **username_1**: Sorry, but something like a "numerical unit" does not even exist... I think I'll give up this discussion.  

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## 0 answers

