How is it that inflation can affect everything EXCEPT wages?
In: 143
Inflation does increase wages. It just happens more slowly.
How much something costs is determined by the seller and is sold when a buyer agrees on that price. When you go to the grocery store the grocery store will set prices based off how much people are willing to pay for it, and how much it cost them to get. If apples suddenly cost them 50% more to buy then you can count on them increasing the price to reflect the new cost to them.
When you have a job you’re selling your labor to your employer. How much money you get paid is determined by how valuable the work you can do is, and how much money you need to afford the things you want. But unlike with the grocery store there are more moving parts in setting prices. Everyone individually negotiates their salary whereas the grocery store just changes the listed price for their apples.
The price you sell your labor at doesn’t change daily like apples at the store might. It changes when negotiated or reviewed.
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