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The only thing that really causes inflation is wage growth, and an observed phenomenon is that overall wage growth does not increase the living standards of wor
by kolbe 4y ago
The only thing that really causes inflation is wage growth, and an observed phenomenon is that overall wage growth does not increase the living standards of workers anyway, because scarce necessities like housing will just increase at a high enough rate to capture all excess wages. On the other hand, the real consequence of wage growth is supply chain and staffing disruptions.
If we could get wage growth without offsetting inflation, that would be great. But the "wealthy" boogeyman that you reference would never allow that to happen!
- lapcat 4y ago> The only thing that really causes inflation is wage growth I'm truly stunned that you can say this after the pandemic.
- kolbe 4y agoA period of time with a lot of inflation and wage growth? How dare I say the two are related. It's not a blanket statement. Real war causes inflation, monopoly power causes inflation. But in the context of modern US, the biggest thing is wage growth.