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I find the general acceptance of the idea that increased wages will automatically be eaten by inflation fascinating. If this idea is true, it means the whole sy
by erellsworth 4y ago
I find the general acceptance of the idea that increased wages will automatically be eaten by inflation fascinating. If this idea is true, it means the whole system is designed so average workers can never get ahead. In other words, the game is rigged.
- zozbot234 4y agoThe very notion of "average worker" seems to disregard the fact that much of the current inequality arises from dispersion in labor compensation itself, not other components of GDP (that are quite residual anyway). If you want workers overall to be better off, you should be pushing for improved economic development and higher productivity.
- erellsworth 4y agoProductivity and economic development have been growing steadily for decades. Wages, not so much.
- haunter 4y ago>If this idea is true, it means the whole system is designed so average workers can never get ahead. In other words, the game is rigged. This is not a case of if, this is the truth. It's just a modern spin on feudalism.
- erellsworth 4y agoAgreed.
- kirykl 4y agoan equilibrium is reached after inflation drives up prices, in effect real wages don't grow
- asperous 4y agoEconomics is about dividing up scarce resources "dismal science". You can't have the real purchasing power of the average person go up without there being more stuff to divide up (more efficient production, more production, etc). You can make things more or less equal, but inflation by itself doesn't cause this to happen.
- mrguyorama 4y agoExcept Productivity HAS been going up ENORMOUSLY in the past many decades, while that immense increase in created value has NOT gone to the workers.
- nybble41 4y agoWhere do you think it's gone? Complain about the wealthy all you want–their personal consumption of goods and services isn't that much higher than the average.
- phailhaus 4y agoInflation isn't sentient, it doesn't "target wages". Inflation is a property of the economy, and it reduces the value of literally everything.