3 ms·

For people without assets, Inflation is their wages rising.

• londons_explore 6y ago
  Not really - wages usually get renegotiated at least annually, and frequently go up faster than inflation. All inflation does is set a cap on real pay decrease. Since very few businesses will decrease pay, then a 4% inflation environment means Bob who didn't get a rise this year effectively gets a 4% pay cut in real terms.
  • mcraiha 6y ago
    "wages usually get renegotiated at least annually" not everywhere. In many places the only way to get better wages is to change job.