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If pay kept up with inflation, then inflation would never subside. Sometimes real wages are grow, and sometimes they shrink.
by qeternity 3y ago
If pay kept up with inflation, then inflation would never subside.
Sometimes real wages are grow, and sometimes they shrink.
- cycomanic 3y agoExcept that inflation this time was not really driven by wage increases (many had very small increases if any throughout covid), what grew massively is corporate profits.
- faeriechangling 3y agoSure inflation would never subside, but people would still be more able to afford things if wage increases outpaced inflation. Wage increases and inflation are sort of inevitable right now because capital is overvalued. All these schemes to try and control inflation by suppressing wages are bound to fail. The people who are extracting rents on the economy need to have their rents reduced and inflation naturally eats into those rents. The problem isn't that people at McDonalds are making too much money, they are still making a pittance after all the wage hikes, the problem is unproductive rent seekers.
- PaulRobinson 3y agoThat's a myth.
- ssss11 3y agoWith inflation though some one/group is making the extra money. Assume for a moment it’s the wealthy as they own assets, shares in companies etc. The argument that “if regular people got pay rises it would fuel inflation” may be true but it’s no solution to our wealth inequality issues, and so presumably the cycle of the wealthy getting wealthier and the rest of us getting poorer should just continue?