Wage costs chase other costs.
They trail goods and energy inflation, and labor actually often ends up net-negative and then they cut spending, which causes the other prices to fall in line with the fall in consumption.
We're starting to see this now. It was merely delayed because consumers had access to credit and welfare, and didn't have to curtail spending.
Also, mass immigration pushes goods prices up and wages down (that's why governments like it). So, that compounds the bifurcation.
Agreed, Labor costs are the last to go up during money manipulation and wage earners can cause price deflation through saving/investing or not having disposable income. The BNPL lines of credit will be interesting.
Agreed on the Mass Immigration as well. Wouldn't be much of a problem if there wasn't a Monopolization in Security or the Legal System.
Also, Mass Immigration isn't inherently a good/bad factor. What sucks is that they enter into a market that is already strained by unnecessary red tape and regulations.
The whole "they're taking our jobs" thing, they're taking the jobs that are left after Govt Economic Controls took a bunch away.
In Germany, the government pays them to move here, finances their entire lifestyle, and subfinances their wages. So, taxpayers, state insurance payers, and fiat bagholders/bondholders actually pay their income.
Companies looooove this.
