2006-10-05 05:49:56 · 11 answers · asked by crispdew 1 in Social Science ➔ Economics
Inflation sucks, because the cost of goods and services goes up at the same time as wages do - and worse - it erodes the value of your savings.
False.
2006-10-05 06:01:17 · answer #1 · answered by Mark P 5 · 1⤊ 0⤋
Workers wages only rise after inflation has been going on for a while. They love the raise but they can never make up for what they have paid out.
2006-10-05 13:01:56 · answer #2 · answered by Pamela J 3 · 0⤊ 0⤋
False. Inflation also raises prices on the goods and services they purchase. Raises in wages never match the rise opf inflation. In the late 70's and early 80's we saw double digit inflation, real wages increased less than 8% during this period.
2006-10-05 12:57:04 · answer #3 · answered by RCG 1 · 0⤊ 0⤋
False. It is the bosses who like inflation, because they can actually cut their employees wage by giving them a raise below the inflation rate, and the employee will not get super pissed about it (generally).
Whereas if there was no inflation and the boss wanted to cut the employees real wage, they would have to cut their nominal wage and the employee would get really pissed and start stealing from work and sabotaging the increased productivity.
2006-10-05 15:16:46 · answer #4 · answered by midwestbruin 3 · 0⤊ 0⤋
Huh? Inflation does not always increase wages - that's like saying deflation means pay cuts for everyone.
2006-10-05 12:52:51 · answer #5 · answered by bill m 3 · 2⤊ 0⤋
To reduce inflation ..you would need to slow down spending ..to slow spending you would need to put up interest rates ..by doing this you are slowing spending ..while you are slowing spending ..you are crating unemployment ..
their for wages need not rise due to lots of man power
available to do the work for the offed wage ..no questions asked happy to be employed ..
2006-10-05 13:34:20 · answer #6 · answered by JJ 7 · 0⤊ 0⤋
it raise wages true but the cost of living wil not remain the same
2006-10-05 12:53:10 · answer #7 · answered by stonebornturbo 2 · 0⤊ 0⤋
False. In my job the rate of inflaton is usuallu greater than the raise. Therefore every year I earn less in "real" dollars.
2006-10-05 13:52:46 · answer #8 · answered by MUD 5 · 0⤊ 0⤋
It decreases their buying power, so they dont like it. They like it when min wages are increased. And only if they make min wage.
2006-10-05 12:53:27 · answer #9 · answered by Annette J 4 · 1⤊ 0⤋
they live in a fools paradise
2006-10-05 12:53:56 · answer #10 · answered by acid tongue 7 · 0⤊ 0⤋