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An Economic Tale That’s not so old
But also not so true, either
A man who runs a large company and gives himself a $25 million bonus at the end of the year is a successful businessperson.
A man who gets a raise from minimum wage (or from some average wage) to something slightly higher is the phenomenon known as the “price-wage spiral”.
These two things are the same thing.
But, one is seen as ruining an economy, and the other is seen as “great business leadership”.
Why?
Because if enough people can afford more food, more shelter, and more basic necessities, then that basket of stuff goes up in price. What people could afford didn’t change, they are simply given more dollars to buy the same things. Naturally, the bid rises against the products — because more stuff can’t be made, but more dollars can easily be printed.
When just one person, or very few people, earn substantially larger lots of cash, inflation doesn’t exist. That’s because it is extracted from the mass wages that were intentionally put at a massive discount to afford the person’s bonus at the top. Kind of like a…
