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move job, get paid more, fuel inflation
It's one of many reasons why (IMHO) treating the labour market as "just another market" that can be trusted to clear on its own and produce equitable outcomes through the magic of Adam Smith's invisible hand is such a nonsense.
If only there was some kind of organisation that workers could join that could negotiate on their behalf (bargain collectively?) with employers to bring wages up to market levels.
NickCJ-
My point was more about avoiding an inflation death spiral that fucks everyone rather than equitable outcomes (sorry lfgss). Bargaining en-masse for inflation busting pay rises will lead to more inflation, just as side-moves that result in inflation busting pay rises will do. The choice for folks feels stark though; do nothing and you get fucked. Do something and you might get fucked less, maybe, maybe not.
Howard
:D
Stepping back a bit, the whole situation strikes me as quite bad;
You know what people are going to do, right?