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Growth in wages is meaningless if inflation consumes it. My opinion is that inflation is generally a bad idea but the thing that really matters is inflation vo
by msgodel 1y ago
Growth in wages is meaningless if inflation consumes it.
My opinion is that inflation is generally a bad idea but the thing that really matters is inflation volatility. The market will adjust for whatever the inflation rate is (unless its extreme) but volatility just results in loss.
- Analemma_ 1y agoThat's why I specifically said real wage growth. In 2022-2023 wages for the bottom ~35% of workers increased at their fastest rate after accounting for inflation. Inflation-adjusted wages for the middle ~40% were basically flat and decreased for the upper quartile. And since that last cohort is the one which dictates policy, they'll make sure it won't happen again.