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>>That includes a rise in wages. That's not how it works either. When the price of fuel increases, the cost to send a worker from point A to point B increases
by kamaal 5y ago
>>That includes a rise in wages.
That's not how it works either.
When the price of fuel increases, the cost to send a worker from point A to point B increases. However the worker salaries don't change all that much, or at-least not uniformly.
- eru 5y agohttps://en.wikipedia.org/wiki/Inflation https://en.wikipedia.org/wiki/Inflation says > In economics, inflation refers to a simultaneous progressive increase in all prices (including wages) in an economy. Of course, you might have a situation that mixes general inflation with a change in relative prices, eg the relative price of labour might decline. In fact, sticky wages are one of the leading contenders for why we have (demand side) recessions at all. https://en.wikipedia.org/wiki/Nominal_rigidity https://en.wikipedia.org/wiki/Nominal_rigidity