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It's definitely fantastic for anyone with employees. If the currency was deflating, you better believe your boss would be doing a downward cost of living adjust
by anonporridge 6y ago
It's definitely fantastic for anyone with employees. If the currency was deflating, you better believe your boss would be doing a downward cost of living adjustment ever single paycheck. As it stands, they can just keep your pay fixed and you are constantly becoming a lesser business cost until they begrudgingly give you a 1-2% annual cost of living adjustment.
Basically, it's easier to manipulate individuals into working for less if the number they're getting remains the same or even goes up, but slower than real inflation.
- dnautics 6y ago> Basically, it's easier to manipulate individuals into working for less if the number they're getting remains the same or even goes up, but slower than real inflation. But that's that's not what happens. Wages don't keep up with inflation. https://www.epi.org/productivity-pay-gap/ https://www.epi.org/productivity-pay-gap/
- BobbyJo 6y agoI could be wrong, but it looks like that is comparing an aggregate/mean ('total productivity's) with a median ('typical wage'), which would paint a very innaccurate picture of what's happening. Like, imagine everything stays the same, but a new class of extremely productive high paying jobs is invented, and grows to 10% of the workforce. This would have only a marginal effect on median wage but a huge effect on aggregate productivity. Nothing would change in any other industry (bread factories still have the same output and still pay the same) but it would make this stat look like like 'the rich are stealing our wage growth'.