How is it that inflation can affect everything EXCEPT wages?
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Power.
A company in fierce competition wouldn’t be able to raise prices least they lose all their business. But if they’re dominant / powerful / their customers don’t really have a choice / (or they collude with the competition) then they can raise prices and force customers to pay more.
If a worker sees inflation is 7% from this time last year, and can demand a raise of at least 7%, then the employee has the economic power to at least keep up with inflation. If the boss says “no”, and the worker can’t find work elsewhere, then they are powerless.
None of this happens automatically. Someone decides to raise the price of eggs. Someone decides to go demand a higher wage.
With the pandemic ending (since we’re vaccinated now) businesses are starting back up and we’re in a rare golden moment where workers are in demand. Get while the getting is good. If your wage doesn’t increase by the inflation rate, your boss is giving you a pay CUT.
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