Comment on Why the cost of living crisis will not get better
Seagoon_@aussie.zone 1 month ago
Wages have dropped to one third in value in the past 50 years.
It’s wages.
If this happened quickly we would say it’s a crisis but because it’s been slow it’s been easy for employers to blame inflation for losses in living standards.
Join a union.
Meanwhile, Trump/maga are engineering a world economic crash. I suggest people cut costs, even if that means living with extended family, and save.
FreedomAdvocate@lemmy.net.au 1 month ago
It’s not just wages. If you start paying everyone higher wages inflation ramps up and you’re back to square 1, only it’s now virtually impossible for costs to ever go back down because wages won’t go back down.
You can’t just put more money out there for people to spend and not cause prices of everything to increase. What you really want is for wage growth for everyone (by law, preferably) to match inflation - no more, no less - and you want inflation to be as low as possible.
Grail@aussie.zone 1 month ago
Wages benefit workers. Inflation is affected by everyone’s wealth. When the rich make record profits, inflation rises and our wages fall in value. When wages are increased, inflation rises and rich people’s hoards fall in value. The key to successful economic policy is to raise wages faster than rich people’s hoards can grow, thus making wage growth the primary driver of inflation. When hoard growth is the primary driver of inflation, we get our current situation.
showmeyourkizinti@startrek.website 1 month ago
Just to tag on to your point higher wages help to GDP and the economy as well by increasing consumption. If the top 1% are getting more money they tend to invest it in lower growth investments (safe investments and high end goods) decreasing the amount of money cycling through the economy. Where as lower incomes spend the increase wages on more goods and services from other people which puts the money back in to movement and increases the number of time the money cycles through the economy.
FreedomAdvocate@lemmy.net.au 1 month ago
And cause inflation.