Re:Former Labor Secretary Found What Work Is Like Now
by ajmurmann on Friday January 21, 2022 @10:25AM
(#30024773)
And when you ask for a pay increase because cost of living has gone up or complain that someone in another town that's similarly expensive earns more than you for the same role at the same company, you'll quickly hear that comp is based on cost of labor and not cost of living.
No, the problem is labor supply and demand curves have shifted, hence prices have shifted.
People do not make business plans and budgets based on the number of high schoolers are available to hire. They make budgets based on the price at which they expect to be able to purchase labor. In this business’s case, they seem to have made some erroneous assumptions, which is the cause of the problem.