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Comment on Why the cost of living crisis will not get better

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.

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showmeyourkizinti@startrek.website ⁨1⁩ ⁨day⁩ 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.

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- FreedomAdvocate@lemmy.net.au ⁨1⁩ ⁨day⁩ ago
  
  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.
  
  And cause inflation.
  
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  - AngryCommieKender@lemmy.world ⁨1⁩ ⁨day⁩ ago
    Japan, of course, doesn’t exist.
    
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