The more they pay us, the more expensive everything gets, from gas to groceries.
No, this is a lie they tell you to stop you getting what you are worth.
Inflation happens regardless. Thus, you should be in a place of work that has yearly raises in line with inflation at the bare minimum. Otherwise next year the company is effectively reducing your salary.
Look up price elasticity. This isnt how it works
Not sure I understand this comment that well tbh but Ill take a shot here.
Im no economist but it seems like “price elasticity” is more of a tool used by economists to measure specific price versus demand.
Definition I found online was “a measure that helps economists and businesses understand how sensitive the quantity demanded of a good or service is to changes in its price.”.
Why is it incorrect to think that as people are paid more, demand will increase for products unless prices of products rise with it?
Part of price elasticity is the fact that certain categories of goods absorb increases in cost more than others. Another part of that is supply and demand. Some products have a lot of”wiggle room” and some are extremely tied to demand.
Because of that some products will absorb the cost as that still creates the most profit. Other products will pass on the extra cost as they can without affecting profit.
If a not a subject you can read a quick blog post on to really pick up, it’s a huge part of most economic courses.
Besides your whole premise misunderstanding the basics of Macro economy and/or the drivers of inflation, there’s plenty of laws that help around the world.
In Switzerland, no salary can be more than 12x any other salary in a company.
In Northern Europe, dividends are taxed at comparable levels to salary. With tax brackets and everything.
Progressive marginal taxation per bracket. There’s a famous case where a famous Swedish author made enough to be taxed 140% of income in high enough tax brackets. That might be extreme, but taxing 60-70-80% at certain thresholds have made for both fairer and more stable societies as well as plenty of tax money to spend on improving infrastructure.
Im no economist, so definitely have a lot to learn here in this space.
How is it working out in Switzerland regarding the 12x? That seems very interesting as well
I checked for references on Wikipedia now, and it seems I was mistaken, they proposed it but never seem to have passed it. There is no such wage ratio law in Switzerland.