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It is not so simple as to say salaries went up so inflation went up. Inflation from decreased supply at the same time as increased Treasury spending through sti
by merpnderp 4y ago
It is not so simple as to say salaries went up so inflation went up. Inflation from decreased supply at the same time as increased Treasury spending through stimuluses, coupled with the workforce shrinking, is what caused salaries to rise.
- ajross 4y agoOnce more, I'm not making an argument about causality. I'm saying that the "compensation" of salaries for inflation already happened. Arguments about "why" just aren't helpful here. Everyone thinks they're smarter than everyone else and knows policies that will be perfect, and everyone is wrong for the same reasons. It's a cyclic feedback market and it just does this stuff, for the most part. But you absolutely can't look at things with a microscope and say "salaries don't keep up with inflation", because that's (almost by definition) never true.