When money inflates in supply, employers have the benefit of the status quo, and wage earners have the burden of work to negotiate higher nominal wages to keep up.
The effect is subtle in developing ...
I agree, particularly for large businesses. It does seem different for small businesses though.
We have to negotiate for higher prices with our customers. Higher hourly rates to cover overhead as well as increased employee wages. Material cost was spiking so rapidly it was nearly impossible to bid a job in advance, which all customers demand. Many Mom and Pop outfits couldn’t keep up and went under.
My best guess for the dichotomy here is regulatory capture, too big to fail nonsense. Customers don’t have a choice to use a competitor because none exist.
What do you think?
We have to negotiate for higher prices with our customers. Higher hourly rates to cover overhead as well as increased employee wages. Material cost was spiking so rapidly it was nearly impossible to bid a job in advance, which all customers demand. Many Mom and Pop outfits couldn’t keep up and went under.
My best guess for the dichotomy here is regulatory capture, too big to fail nonsense. Customers don’t have a choice to use a competitor because none exist.
What do you think?
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