How is it that inflation can affect everything EXCEPT wages?
In: 143
>ELI5: How is it that inflation can affect everything EXCEPT wages?
An inflation-adjustment of your wage is a price increase for your labor. Unless you have a union negotiating on your behalf it is **you** who has to make that price adjustment, i.e. negotiate a higher wage or a contractiual regular wage adjustment.
Since not every employee actually *does* that and no employer not affacted by a labor shortage is going to do it on their own accord, wages – on average – are slower to rise.
Latest Answers