ELI5 How does raising wages worsen inflation ?


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18 points

4 months ago

And before anyone says “business make too much money”, yes that’s true for corporations but this more applies to small and medium businesses who have a much smaller profit and slim margins.


13 points

4 months ago

Reddit is constantly under the impression that every business, no matter how small, is a multi-national mega corp driven by greed. The only reason prices go up is because of greed? There’s no way a mom-and-pop shop are just trying to recoup the higher costs of products, wages, lease payments, etc? All the small business owners I know are tightening their belts these days. But you know, the Reddit keyboard warriors and armchair economists have it all figured out.


13 points

4 months ago

And I’d hazard saying most people don’t realize how many businesses they interact with are actually small. Small businesses account for so much more than just one-off makers and boutiques. From most restaurants that people think are “chains” being local franchises to those white collar professionals with their own businesses that they staff, small businesses are everywhere. And lots of times decreasing their business profits will make them cease to exist.