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> Let’s say your boss gives you a 3% cut instead of a raise That basically doesn't happen. If 3% of the payroll needs to be cut, ~3% of people are usually lai
by randallsquared 7y ago
> Let’s say your boss gives you a 3% cut instead of a raise
That basically doesn't happen. If 3% of the payroll needs to be cut, ~3% of people are usually laid off, instead. Resistance to lowered numeric wages is why moderate amount of inflation are typically considered a good thing: workers will more often accept less or no increase than they will an actual drop.
- blackflame7000 7y agoPlease don't split hairs on a hypothetical example, it misses the point. You could achieve the same effect with no raise but high inflation. It's irrelevant to the point that the amount someone is earning directly influences how much they are spending.