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The standard macroeconomic approach is to keep inflation low so that wages will ‘catch up’ to costs. This isn’t working though, low wages seem to be sticky. Thi
by Gatsky 7y ago
The standard macroeconomic approach is to keep inflation low so that wages will ‘catch up’ to costs. This isn’t working though, low wages seem to be sticky. This implies that there aren’t enough new jobs, and there are plenty of people who will take whatever they can get.
- therealdrag0 7y agoBut if costs come down, that is effectively a raise in wages. The cost of many goods has come down (for some of the same reasons wages are down!), but as OP said housing/education/medical have gone up. So if we can target those rising costs, that can be very effective, without raising wages.