How is it that inflation can affect everything EXCEPT wages?
In: 143
People are right to say inflation does effect wages.
But the fact that wages are slower to change, and don’t keep up in the long run shows that wage negotiations are not a free market even as much as consumption is.
Wage negotiations are mostly asymmetrical. Companies are big, employees one at a time are not equally powerful. Collective bargaining, unions helps fix this. Industries with unions keep up with inflation better in the long term.
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