Re:Why the Fed wants corporate America to have a hiring freeze
by s1artibartfast on Monday May 30, 2022 @01:15PM
(#31561190)
I think we are saying the same thing.
You are just giving the hypothetical answer where blue collar salaries stay low and I am giving the hypothetical where blue collar salaries rise.
If blue collar wages stay the same, then yes labor costs are discounted.
If they raise, it may make sense to eliminate the position via automation or shipping the job overseas.
Wages are generally sticky, but nobody will take a job if they can't feed their family and pay rent, so inflation will eventually drive the wages up or make the position obsolete.
You are just giving the hypothetical answer where blue collar salaries stay low and I am giving the hypothetical where blue collar salaries rise.
If blue collar wages stay the same, then yes labor costs are discounted.
If they raise, it may make sense to eliminate the position via automation or shipping the job overseas.
Wages are generally sticky, but nobody will take a job if they can't feed their family and pay rent, so inflation will eventually drive the wages up or make the position obsolete.