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Huh, I thought the consensus was that inflation generally favoured workers and disadvantaged asset owners. I learned that the comparable value of assets is erod

• rsj_hn 5y ago
  Most people, including workers, do not like inflation because they don't expect their own wages to rise in real terms. But they could, e.g. the shifting of relative prices is possible even if the general price level is going up. But rarely does inflation benefit workers. For example now we have average real wages falling by 3%, which is not good news for workers, and that fall is entirely due to inflation.
  • imtringued 5y ago
    >But rarely does inflation benefit workers. For example now we have average real wages falling by 3%, which is not good news for workers, and that fall is entirely due to inflation. Negotiating power depends on how close you are to full employment. If an increase in inflation results in more employment then you will get closer to full employment and over the long term you can use your newly gained negotiating power to get wages that outpace inflation. One problem right now is that things like gas price increases don't meaningfully contribute employment, they are just a short term inflation spike that is going away. i.e. it's stagflation caused by a supply shock