Higher prices lead to higher wages. That’s been fairly well established (I thought).
The silver lining is that debt becomes cheaper and easier to service in an inflationary environment.
The silver lining is that debt becomes cheaper and easier to service in an inflationary environment.
> After adjusting for inflation, however, today’s average hourly wage has just about the same purchasing power it did in 1978, following a long slide in the 1980s and early 1990s and bumpy, inconsistent growth since then.
https://www.pewresearch.org/fact-tank/2018/08/07/for-most-us...
Price is constrained by efficacy of competitors.
If your only person in town that digs holes, you can use a spoon and charge anything you want. Until someone buys a backhoe and Charges half your price.
Wages are constrained the same way. If your making lots of money, and need more help but only 1 guy available. He is going to get paid a lot. If there 10 people free you offer the lowest that someone is willing to take that you still make money.
If your the government and want to spend money then you just print a bunch of money. This is true source of inflammation.