4 ms·
This can still be the case if wage growth went disproportionately to low earners who produce widely consumed goods/services, whose prices were deflated due to l
by MontyCarloHall 4y ago
This can still be the case if wage growth went disproportionately to low earners who produce widely consumed goods/services, whose prices were deflated due to low wages.
As an extreme example, suppose all farmers were unpaid slaves. Slavery gets outlawed, and farmers now get paid. Food prices rise dramatically, resulting in massive inflation overall (and thus a fall in real wages for everyone except farmers).