How does raising wages worsen inflation ?
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You have 5 apples. Last week only 5 people could afford 5 apples, so the apple tree guy only picked 5 apples. Now 9 people can afford apples. The apple tree only produces 5 apples a day, but he needs 9. Either the price goes up to price out 4 people or the apple tree guy needs to grow more apples. If he can make more money with less work, then why not raise prices if the demand for apples is exceeding supply.
The opposite is true too. If I’ve got 5 apples that will be worth nothing in a week and only 2 people buy them, then I have to reduce my price to increase demand.
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