4 ms·
I thought raising wages was not what you want to do to fight inflation?
by krazii 4y ago
I thought raising wages was not what you want to do to fight inflation?
- mempko 4y agoRaising wages doesn't increase inflation, it's raising prices to customers.
- astrange 4y agoRaising wages _can_ increase inflation because the workers will use them to buy more goods, which might be supply limited. But Japan's inflation problem is that they don't have enough of it, so that's fine…
- mempko 4y agoRight, but limited supply doesn't have to mean raising prices. That decision is done by management and business owners. It's not an automatic kind of outcome, but a deliberate one.
- bloodyplonker22 4y agoIt's just another basic economic effect of having too much money supply in the system. Governments printing too much money at a fast rate is the core reason of why inflation happens.