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UK workers see record pay rises, but inflation eats them up
(www.reuters.com)
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this post was submitted on 02 Nov 2023
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Ha, where are those in Germany? The only thing we got was a one time inflation bonus and that was it.
Isn't inflation like a godsend to companies? They can use it as a pretext to increase their prices but also as an excuse not to give their employees decent pay rises, because you know inflation spirals, difficult times, etc. bullshit.
In the end they increase their profit margins at the expense of their employees and the CEO gets a hefty bonus package for his "good" work.
Quite common in the rest of EU too. Price raises but unaltered salaries.
In Germany in 2023Q2 wages increased by 6,6%, while inflation was 6,5%.
https://www.destatis.de/DE/Themen/Arbeit/Verdienste/Realloehne-Nettoverdienste/Tabellen/liste-reallohnentwicklung.html#134648
And during Covid and the Ukraine Crisis for the longest time people agreed to accept no wage increases in order to keep the companies from failing in those times.
But instead of that being honored now, the companies just make record profits and argue that wage increases would stipulate inflation.
Just look at the Q2 chain down from there:
So over the past 5 years the effective wage increase was -4.6%. Meanwhile companies raked in record profits after record profits and enjoyed a lot of bailout money. To clarify, it is -4.6% over five years, that is about -0.93% p.a.
The comment I replied to implied that the situation got worse this year. Which is plain wrong.
@agarorn @filister See, the system works when looked at in a mean way! You just gotta assume everyone is the same and in the same situation and dealing with the same things and just keep doing this for a century or so and you'll get meaningfull results.
??
The comment I replied to made it seem the situation got worse this year, which is, in this generality, wrong.