3 ms·

Increasing wages for everyone doesn't inherently mean everybody will earn more. Less money will go to shareholders, decreasing inequality

• imtringued 6y ago
  It can be difficult for shareholders to earn money if there is high CPI inflation. If the previous year over year ROI is 7% and inflation grows by 3% then you have to increase your ROI to 10% just to catch up with inflation. This means only the most productive companies will actually maintain their existing growth. Compare that to a deflationary environment where every warm body with a big bank account can get 7% ROI without even trying or even do annoying things like employ workers.