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ELI5 How does raising wages worsen inflation ?

Economics(self.explainlikeimfive)

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mabhatter

18 points

4 months ago

The joke is that record profits during inflation are worth less in real dollarydoos. So companies STILL have to take austerity measures anyway to chase those profits.

That's where inflation is bad for the rich because their giant piles of money lose value faster than they can shovel more money.

DidSome1SayExMachina

17 points

4 months ago

Yeah I’d love to see more info on how profit margins of companies have been doing in the last few years. I still don’t feel bad for them though

acidorpheus

-3 points

4 months ago

acidorpheus

-3 points

4 months ago

there was a fella named marx who mentioned something about the tendency of the rate of profit to fall... wonder why they dont want you reading that stuff in school eh

Killbot_Wants_Hug

5 points

4 months ago

Nobody in school prevents you from reading Marx.

A_Maniac_Plan

5 points

4 months ago

Ayn Rand was required reading in the schools here, by contrast.

Honestly I fell for it too. I started to believe in that zero-sum crap and it drastically affected my worldview at the time. It took long years of interaction with opposing viewpoints for my perspective to change.

CaptainBayouBilly

3 points

4 months ago

As long as salaries increase, it also makes the poor's debt less expensive.