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by nradov 21 days ago
Merit raises are typically based on market rates as a baseline. The employees' costs in terms of consumer price inflation are not a factor. If every employer gives out raises in line with inflation that also creates a positive feedback loop which contributes to higher and higher inflation every year (I do understand that's not the only thing which drives inflation rates).

If your wages are falling behind then look for opportunities in higher growth sectors.

1 comments

As an employee I don’t care about the reasons that inflation exists, I care about getting the same real money over time (only counting inflation raises, not counting merit or other kinds). And citation needed about inflation raises driving inflation, there are much bigger factors that contribute to it.
Employers don't care about whether you're getting the same real money over time. Why should they?
Because I do, and if they only care about me as an economic output machine then why should I care about them?

Put another way, if they aren’t matching inflation, should I reduce the work I do correspondingly?

No one is forcing you to care or to produce any particular level of work. If your job has no growth opportunities and stagnant compensation then you might want to look for other opportunities.

I think the issue here is that you're trying to frame the issue in terms of some sort of concept of fairness. But in reality that has nothing to do with it.

That’s a bit misleading, no? If you don’t produce a certain level of work you’re going to be fired.
There's nothing misleading about it. You can make your choices and accept the consequences of your actions.
Because people are not perfect incarnations of idealized concepts. Employers are people who exist in society who have concerns beyond the bottom line. That many or well more than most employers have forgotten this fact is at the core of what is wrong with work, corporate America, and capitalism in general.