Re:Is the world economy entering a wage-price spiral?
by Closi on Wednesday October 20, 2021 @03:35AM
(#28927842)
It’s a good point, especially considering retail profits in sectors like food can be as low as 2-3% of revenue, so a 40% increase might be an extra 1% of revenue, while labour costs might make up 30-40% of costs, so if those went up by the same absolute percentage then the chain would be losing money (which would presumably then allow them to cut everyone’s wages by the same proportion by the same logic?)
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