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> Salaries are always adjusted to meet the inflation This does not agree with the policy reason for inflation, which is explicitly to give labor class a silent
by dnautics 6y ago
> Salaries are always adjusted to meet the inflation
This does not agree with the policy reason for inflation, which is explicitly to give labor class a silent pay cut:
https://krugman.blogs.nytimes.com/2010/02/13/the-case-for-higher-inflation/ https://krugman.blogs.nytimes.com/2010/02/13/the-case-for-hi...
- mrtksn 6y agoYou missed the part about the economy doing fine. Anyway, salaries don’t stay static because people are not static - they age and get seniority, change jobs, get promoted, get redundant because technology and market changes etc. It’s probably not the inflation that is eating in the wages in many cases. A lot of wages moved from established professions to software developers or moved from deindustrializing countries to China and so on. %1-%2 inflation is a noise regarding to changes in salaries. My grandfathers income from his profession did not perish due to the inflation but because of the proliferation of sneakers and cultural change that made sporty shoes acceptable in workplaces.
- imtringued 6y agoIt's a "pay cut" to less productive work and a pay raise to more productive work.