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"Wage inflation" is talked about as a problem by various politicians and TV networks. I think the underlying logic is "if wages keep going up, it makes it harde
by cj 4y ago
"Wage inflation" is talked about as a problem by various politicians and TV networks. I think the underlying logic is "if wages keep going up, it makes it harder to bring inflation down".
In other words, if people get paid more, demand stays the same (or increases) which is counterproductive to lowering inflation.
- MuffinFlavored 4y agoI don't disagree at all. I also know it isn't this simple but in my mind it's roughly: Hey entry level worker. 2 years ago we (company) would have paid you $12/hr. Now you have made it (by not applying for our open positions we need filled/quitting over time) that you refuse to work for less than $14/hr. That's a 16% increase in our payroll. That's fine! We'll just charge 16% more for our product and the entire thing will be "put off" by the customer who will front the bill. Our bottom line is unaffected and the entire thing is a passthrough for us.