>Real wages already have productivity and inflation factored in What source are you using that adjusts for productivity when reporting real wages? Real is defi

>Real wages already have productivity and inflation factored in What source are you using that adjusts for productivity when reporting real wages? Real is defined as inflation adjusted only. >Assuming you use the example rich demographic I gave, what would be an example scenario that systemically breaks the 1:1 ratio? >Say if you are really rich, your personal consumer basket that defines your personal purchasing power (and your personal inflation) will be dominated by expensive luxury items and investments while regular food/medical price increases will not impact you at all because they are a small part of the basket. However if your "demographic" (that has similar personal consumer basket) wage increases there is nothing to stop the price increase on such goods. You're assuming perfectly inelastic supply, among other things. If there's elasticity, then additional money will result in some additional supply of luxury goods and greater quantity demanded. Also, investments != purchases. Investments are a decision to defer consumption to the future.