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No, what happens is wage pressure translates into higher input costs and higher prices thus fueling inflation. And that hurts low wage workers because any wage
by refurb 4y ago
No, what happens is wage pressure translates into higher input costs and higher prices thus fueling inflation.
And that hurts low wage workers because any wage increase gets eaten up by inflation and cycle continues.
If we were in a low inflation environment then the fed wouldnt be concerned about low unemployment and rising wages at all.
- harimau777 4y agoI don't think that's different than what I said. Wages started increasing and the economy started to fall apart prompting the Fed to step in. That means that the system is broken. There is no way for the lower class to get ahead. If they make higher wages then prices will simply increase so that they aren't actually ahead.
- refurb 4y agoOf course there are ways for the lower class to get ahead - economic growth without high inflation. Like I said in another comment, if wages were going up in a low inflation environment, the fed wouldn't be concerned at all.