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Thread: Can salary rise ease prices hike?
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[quote=APAULT,257687]The problem with the wage rises is that they will add to the inflation. But I would argue that workers have a right to maintain their wages, so the wage increase should go ahead and the government will have to find ways to control inflation. One interesting point you made is that wages are not keeping up with the GDP growth. So where is the money going? Two places: it is being paid to a minority as business profit, and being retained by the government as reserves. The government does this so as to have finance in the future if the economy slows, to have funds for emergencies, AND to hold demand back - because all the money went into consumers hands we would really see some inflation![/quote]
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