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> Every argument against increasing labor share of income boils down to "oooooooioooh, inflaaaaaaaaation, spoooooooky!" This doesn't seem to make any sense, co
by indigochill 5y ago
> Every argument against increasing labor share of income boils down to "oooooooioooh, inflaaaaaaaaation, spoooooooky!"
This doesn't seem to make any sense, considering increasing labor share is not creation of money (inflation) but merely a different method of allocating the existing money. But maybe that's your point or maybe inflation is defined differently than what I learned in high school.
- diordiderot 5y agoI believe that most Americans believe that it's an economic law that if wages increase it _will_ result in wage price inflation. Inflation just means you get less stuff per dollar in the store Wage price inflation means the excess labor cost(wages) is added to the price of goods, resulting in increased wages, resulting in increased prices over and over until bread costs 1 billion dollars. This is an absurd proposition when you could just reduce profit margins. The problem is that capitalists don't want to. Why should they! What should happen is that we should allow wage price inflation forcing companies to lower profit margins after a very short recession, then quality of life would increase for the working majority.
- skohan 5y agoSee this would hold if the money supply is held relatively constant. We are not in that environment.