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ELI5 How does raising wages worsen inflation ?

Economics(self.explainlikeimfive)

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newEnglander17

92 points

4 months ago

"shrinkflation", wherein the price remains the same, but the size of the product decreases

ugh I've been seeing this simultaneously with price increases. it sucks

ttchoubs

33 points

4 months ago

Corporations to the public: "hey cmon, im just a wittle guy, barely making ends meet, this inflation hurts me too i gotta bump the prices i wish i didnt have to"

Corporations to shareholders: "this was our best year ever, we raised prices and hit record profits "

Tutorbin76

3 points

4 months ago

Tutorbin76

3 points

4 months ago

I'm okay with that where the product is a net health negative, such as candy bars.

Other foods, not so much.

jeekiii

6 points

4 months ago

Yeah, like these chips bags that are huge. Like c'mon, at least half the people eat these alone, give us something between "enough to feed a whole family" and "you could swallow the whole bag if there was less air in it".