How does raising wages worsen inflation ?
In: 3656
Inflation can be caused by a myriad of factors. One of many is raising wages above productivity increases. It’s unfair and incorrect to say that raising wages is always the main cause of inflation, it can be a very minor factor and even be completely counteracted by other factors. However, it’s pretty naïve to think that raising wages flat-out doesn’t cause inflation.
https://www.investopedia.com/terms/i/inflation.asp
Latest Answers