This really shouldn't be a surprising result. Inflation is something that happens regardless of whether or not wages rise. If wages remain stagnant while inflation continues to increase, your...
This really shouldn't be a surprising result. Inflation is something that happens regardless of whether or not wages rise. If wages remain stagnant while inflation continues to increase, your average person ends up having lower purchasing power every year, which results in stagnating economic activity. On the other hand, while an increase in wages will initially result in some financial burden on employers (minimally, if wages are increased gradually), the increased purchasing power and resulting increase in economic activity ends up balancing things out.
Especially with regards to the restaurant industry, you're not exactly going to be doing well as a restaurant owner if no one can afford to pay for your food.
This really shouldn't be a surprising result. Inflation is something that happens regardless of whether or not wages rise. If wages remain stagnant while inflation continues to increase, your average person ends up having lower purchasing power every year, which results in stagnating economic activity. On the other hand, while an increase in wages will initially result in some financial burden on employers (minimally, if wages are increased gradually), the increased purchasing power and resulting increase in economic activity ends up balancing things out.
Especially with regards to the restaurant industry, you're not exactly going to be doing well as a restaurant owner if no one can afford to pay for your food.