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You will go back if you have no other company who would pay you more than 3/4. And that’s what you get when there is no inflation but the employer side of the l
by nequo 3y ago
You will go back if you have no other company who would pay you more than 3/4. And that’s what you get when there is no inflation but the employer side of the labor market becomes more concentrated or employers collude to only ever pay 3/4.
- tastyfreeze 3y agoYou have a very different model of human behavior than I do. Businesses don't fuck over their employees if they want to continue having employees. Also, in this scenario my savings doesn't also depreciate. When the employer decides to pay less I still have the full value of what I have already earned. With inflation, my current earnings are reduced and any dollar savings I have are reduced.
- nequo 3y agoI’m not talking about human behavior so much as about market structure. You go with the best offer that you get. If 3/4 is the best offer because your employer has driven labor-market competition out of town or because there wasn’t much competition in town to begin with (think Walmart or Amazon warehouses), then you need to take 3/4 or else be unemployed. Savings help you for a while but if you’re like most workers, eventually you’ll need a job again. But I think you’re also right in that inflation helps employers lower wages without being upfront about it.