It’s even better than that, though:

The deflation rate is simply the percent increase in overall value of the world economy given the constant money supply.

The more effective employees will have increased their own value at or above the deflation rate, so the employer wouldn’t need to (and shouldn’t) force a pay cut. The very best employees may even still get a pay raise.

It’s the below-average employees that may get a pay cut or laid off if their effectiveness does not go up over time.

As it should be.

Reply to this note

Please Login to reply.

Discussion

No replies yet.