4 ms·
I think you're missing the point. With a 6% inflation, a 6% raise means the employees are worth the same as before, not more.
by nicoco 5y ago
I think you're missing the point. With a 6% inflation, a 6% raise means the employees are worth the same as before, not more.
- aeternum 5y agoDepends on whether we're talking about real or nominal wages. Regardless, my main point is that most people must switch jobs to see the increase. Wages grew 6.6% for job switchers so it is keeping up with inflation. IT and professional services was 10.5%+ but again only for job switchers. https://www.valuepenguin.com/news/ADP-wage-growth-report https://www.valuepenguin.com/news/ADP-wage-growth-report
- actually_a_dog 5y agoSo, the economically rational thing for everyone to do is to engage in this gigantic game of musical chairs, if they care about the number at the bottom of their paystub? That's silly, and a great way to throw away a lot of specialized domain knowledge.
- aeternum 5y agoThere's a lot of value in playing musical chairs. The market is pretty good at allocating human labor. Some companies get left without people in the seats and others, often the more innovative companies end up with more than they had before. A labor market with high liquidity leaves most people better off.
- actually_a_dog 5y agoThe labor market can go fuck itself if it doesn't serve the people, IMO. People aren't just for creating "value." They have lives. If the economy doesn't work for people, it just plain doesn't work. Not everybody wants to change jobs all the time. Those people don't deserve pay cuts for providing the same "value" they provided a year ago.
- Thorrez 5y agoWe're definitely talking about nominal. wing-_-nuts said 'with inflation rising at 6%, will the company reconsider their 'standard' 2% raise?' It wouldn't make any sense to say that if the 2% raise was real.
- neuroma 5y agoIt's worse. Many people could see their fractional tax burden increasing as their nominal wage rises and crosses higher tax bandings. Inflating is a slow theft, and the description of "financial oppression" is apt.
- walls 5y agoYou definitely don't know how progressive tax brackets work.
- refurb 5y agoTax brackets in the US are indexed to inflation. They weren't always, but that was changed in the 80's I think?
- notreallyserio 5y agoIt doesn't look like the increase is quite 6% across the board, however: https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2022 https://www.irs.gov/newsroom/irs-provides-tax-inflation-adju...