this post was submitted on 13 Jan 2025
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In addition pay anywhere, whether being in public service, or private firms is used as comparison by employeers and employees elsewhere. If a place pays better, it's used by employees at another place to ask for better wages. If a place pays less, it's used by employers elsewhere to give lower wages. Better wages across the board are good for the economy and all working people, up to the point where they start driving up inflation. We're not anywhere close to that. If you've heard the term "wages haven't caught up to inflation", the process of catching up is people negotiating higher wages. Just like the current example. Without it, we get poorer and poorer over time. Might sound familiar.