Pay rises

[monomatapea]

If everyone gets a pay rise will that help with inflation or will it push the prices up more. I don't understand how it works. I know some pay rises are linked to inflation maybe?

Increasing people's wages usually increases inflation.

Is you increase someone’s wages, say in a factory for example, the cost of the factory of producing what it produces goes up so they have to put the price up or make no profit/ make a loss

It increases inflation

funny how this only applies to the minions, didn't the mps get a payrise

Because you can only spend this much money. Minions need it for living, MPa are just stuffing their bank accounts I guess. Fucked up isn't it. Those who don't need it and probably won't spend it for food and bills, get payrise.

If wages keep pace with inflation why does it matter tho considering it's a global issue. Generally raising wages of the highest paid leads to saving not spending which doesn't effect inflation as much, the concern is lower down the pay scales as they are more likely to spend it and further push up prices.