labor 'shortage' - eviltoast
  • nintendiator@lemmy.fmhy.ml
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    1 year ago

    Actually, they should more-than-mirror inflation.

    See, most people only have one job, so one source of payment. But they have N expenditures: health, food, electricity, transportation.

    If inflation increases those general prices 20%, that’s 4 (or 5, or 6, or…) 20% increases in cost. Since currently wages are already lower than the cost of living, a raise in pay mirroring inflation would allow it to cover for one of those increases, on average, so the employee now has actually become poorer than before.