Quote:
Originally Posted by grizy
Wages are rising very quickly overall, albeit unevenly. Lower unemployment also brings money into the system. Another fuel source is rising asset (stock) prices. Yet another fuel is just pent up demand from people coming out of their caves.
That's great for those receiving the wages but it still results in more money spent on the same quantity of goods produced. So unless you're from the "give people more money to spend and businesses won't just raise their prices but instead produce more goods for them to consume" school of thought, those rising wages without being met with an increase in production, which they're not, will just lead to higher prices.