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Wage-price spirals only happen when business owners refuse to adjust down their operating margins and instead pass the increased payroll costs on to their custo
by crmd 3y ago
Wage-price spirals only happen when business owners refuse to adjust down their operating margins and instead pass the increased payroll costs on to their customers. Too much economic value is accruing to capital and not enough to labor. This is what needs to change.
- ryandrake 3y agoAlso: If companies could increase profits by raising prices, they would do so, regardless of what their wages were. The whole "we'll pass along prices to consumers" threat is empty. If companies could simply raise prices, they would (and they do, when they can).
- seanmcdirmid 3y agoIsn't the same true with labor? If they can get more money for their work, they will ask for more money or quit and find a job that pays more? At least, that is what seems to have been happening for the last couple of years. The only problem with that is that finding a new job kind of sucks and is risky.