• TheDemonBuer@lemmy.world
    link
    fedilink
    arrow-up
    2
    ·
    edit-2
    2 days ago

    If my pay rate doesn’t automatically increase to match inflation, then any inflation is bad from the consumer perspective

    That’s the thing, economists will say that modest inflation is fine, necessary even, but it’s only “fine” for people whose income increases every year at a rate that is at least equal to the rate of inflation. Anyone who doesn’t get a raise that at least keeps up with inflation is actually getting a pay cut. Many people do get at least a cost of living raise every year, but many people don’t, and those people get poorer every year.

    But even people who are lucky enough to have an income that keeps up with inflation are just staying in place financially. They’re not getting any poorer, but they’re not getting any richer either. Working your ass off in a job that slowly kills your soul, just to run in place, doesn’t make people feel great about things.