Take this job & shove it.

As others have said, there is nothing inherent that would require prices go up to match increased wages. Price will still be defined by supply and demand, which could decrease price theoretically if the increased purchasing power leads to more sales and more competition. Likewise inflation isn't necessary if new money isn't used to find the raises. Companies could just take the hit to their profits or move the money from other expenses to the new wages. You know, like they should according to classical captialist theory.

However, this is a system of people after all. The people that run the companies might very well decide to raises prices to match the increase in wages in some attempt to maintain the percentages of profit and expenses. That would undermine the increased purchasing power these raises are trying to enact.

Such a tactic would fail if only one company did it, since consumers would just avoid the expensive products. But in our modern, interconnected world business collaboration in setting norms is a pretty regular occurrence so this is honestly pretty possible. Likely, even.

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