Yes. It would certainly cause a wage-inflation spiral. Even so, such a spiral could be straightforwardly prevented if the policy intended to bring high wages w

Yes. It would certainly cause a wage-inflation spiral. Even so, such a spiral could be straightforwardly prevented if the policy intended to bring high wages was coupled with a policy requiring forced savings. There is no fundamental reason why high dividends does not cause CPI inflation. However, because of concentration in company ownership a larger fraction of dividends are reinvested than the fraction of wages that are invested-- i.e. those with large holdings have a lower propensity to spend. However, we can reduce the propensity to spend of those who work with laws. Such a policy would also permit reducing the extreme taxes on wages in some countries-- without a policy like this if we set taxes on income from wages equal to income from dividends, investment will drop and we will get CPI inflation-- a very undesirable situation. With this kind of policy, one wouldn't.