If more jobs pay more, will we see further rise in inflation?

[Quinten]

Inflation is already an issue at the moment with lots of stuff going up in price, but it made me wonder about other jobs potentially paying more in the future and what that would do to inflation. Do you think with more jobs paying more in money, that inflation will just continue to rise? 

[James]

Companies have a line item on spreadsheet called labor cost. That cost has to get passed onto the consumer as a company needs to make profit. 

So if labor rates go up the costs of products go up. 

It is all relative to the situation. 

Adding more cash to the system from nowhere is not going to work in the long term. It is like the economy is on crack right now but eventually the high is going to have to end and there is going to have to be a crash. The longer we take the crack the farther the crash will have to be. 

Eventually everything has to return to its mean. Nothing can go straight up forever. 

Crashes are not something we should fear either they are something we prepare for. It is where the prepared and patient people get to make their money. 

[Scarlett]

I have seen this directly with my uncle who owns a store in the area. He had to pay his staff higher costs. Matched with inflation (items being sold in bulk at higher prices) he had to increase more items by 30% in his shop. What is sad is that he is hardly making a profit for himself at this point. Just enough to scrape by. He is going to have to sell his house and downscale next year just to afford a mortgage. 

[Emma]

^ That is what a lot of millennial and zoomers don't realize. 

Just because a company is doing well, it doesn't mean the owner is living a life of luxury. Most small business owners live in average houses, in average areas, and have just enough to support their families while the rest of the money goes back into the business to pay employees and keep things moving. 

[Mila]

I don't know. I mean inflation is going to happen regardless of what people are making. Every time I see people demanding $15 minimum wage I laugh because it is already here and thanks to inflation, that $15 an hour is going to be more like $8 or $9 an hour.