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by Manuel_D
1657 days ago
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> I see your compassion, but income inequality isn't driven by prices, it's driven by the employers not paying enough to their employees. Not exactly, it's also driven by price increases. If employers give their employees a 50% pay increase, but prices increase by 50% then that pay raise is rolled back by inflation. Wealthier people more often have their money in assets, with values that increase alongside inflation. This is largely the dynamic we're seeing in the US: labor shortage means people get paid more, but those increased wages are getting eaten by higher prices. |
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Also the sources I see show nominal wages growing faster than inflation for low income households, meaning that their real wages are actually increasing.