How does raising wages worsen inflation ?
In: 3656
The theory is that higher wages -> everyone has more money -> everyone can spend more -> everyone can have higher prices because everybody has more money.
In practice, this isn’t really backed by any real data and it’s doubtful that it would go that way.
edit: Too many replies to answer them. Yes I know that there is some correlation between wages and prices, if you pay everyone 10x their current wage, you will have to raise prices.
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