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For the cycle you propose the increase in inflation would have to be equal or greater than the increase in pay. If there's an increase in wages and the increas

For the cycle you propose the increase in inflation would have to be equal or greater than the increase in pay. If there's an increase in wages and the increase in inflation in response is lower then there's and effective wage increase despite the inflation. Which is simply the desired outcome. An increase in inflation that matches or outpaces an increase in wages should only happen if wages are 100% of the cost of goods/services. So the cycle you propose should be a non-issue. Right now i feel that we've been so scared to increase wages that we've simply made wages pointless altogether. Assets from second hand cars, to houses, to shares are all skyrocketing in value. I can't imagine people working for minimum wage and looking at the value of the house they rent go up by 10x more than their salary each month and thinking this is ok. We've been so scared of increasing wages because of inflation fears yet we've allowed all the QE to go into assets. It's led to an imbalance of wages compared to the cost of assets. There's a need for market correction from the government to get wages back in line with the value of assets and as long as any forced increase in wages isn't leading to inflation that outpaces the increase it's a perfectly reasonable solution to pursue.

Ericson2314 5y ago
The current "inflation" thing is not so much due to asset inflation, but due to poor people finally seeing some gains, and the global production capacity still recovering. Before now, there still was a large amount of QE, and yet little inflation or wage gains. Now, the labor market finally gets tight, bottom half real income goes up, inequality shrinks. But our global supply chains were bred on austerity, tuned to low demand, bean-counter efficient over resilient, and can't keep up. In particular, your minimum-wage protagonist has a better 2020 and 2021 than 2019. The current inflation freakout is anti-fiscal- and anti-monitary; it just wants to go back to 2019 and is thus little but evil class warfare, intentionally or not. The right thing to do is to keep the labor tight while finding some completely separate way to discipline the speculation in land, stocks, and crypto (in order of increasing being a farce).

Ericson2314 5y ago

The current "inflation" thing is not so much due to asset inflation, but due to poor people finally seeing some gains, and the global production capacity still recovering. Before now, there still was a large amount of QE, and yet little inflation or wage gains. Now, the labor market finally gets tight, bottom half real income goes up, inequality shrinks. But our global supply chains were bred on austerity, tuned to low demand, bean-counter efficient over resilient, and can't keep up. In particular, your minimum-wage protagonist has a better 2020 and 2021 than 2019. The current inflation freakout is anti-fiscal- and anti-monitary; it just wants to go back to 2019 and is thus little but evil class warfare, intentionally or not. The right thing to do is to keep the labor tight while finding some completely separate way to discipline the speculation in land, stocks, and crypto (in order of increasing being a farce).