The insidious nature of inflation is that it is in a feedback loop. Costs keep using so we insist that the minimum wage must go up. People who are working at jobs,requiring some degree of skill or knowledge argue that their contribution is worth more than someone flipping burgers , and rightfully so, and their wages rise. Witness, the record number of people leaving their jobs last month. And so it goes up the line. Here is an interesting web site that gives average wages by occupation.
https://www.bls.gov/oes/2020/may/oes_nat.htm#45-0000
With rising labor costs, the cost of manufacturing goes up and retail prices follow. And the people making the new minimum wage can't make ends meet. So the spiral starts again. This wouldn't be a problem as the system would just readjust but people on fixed incomes such as retirees don't get an adjustment to their assets. Unless you have your assets invested in risky products, your annual return is minimal so a 5% inflation rate means a 5%, or close, reduction in the value of your assets.
Not to say that there aren't grievances. Company executives with tens of millions in compensation packages is obscene. The idea that your organization has to have the best of the best at any cost has pushed this concept. The same is true for professional sports. And not to say that vendors don't take advantage of temporary situations to increase prices. During wartime, this is called profiteering and can carry some stiff penalties. For a drug company to increase the cost of insulin by a double digit factor when for many it is a necessary life saver regardless of financial circumstances is also obscene.
IMO, compensation should be based on a number of factors. !. skill set requirements, 2. knowledge and training requirements, 3. personal risk and safety, and 4. responsibility.
Additionally, throughout history, there has never been a requirement for society to provide a comfortable standard of living for its citizens. Even communism, with its edict of "each according to their needs" didn't. A hundred years ago, multiple families occupied a couple of rooms in a cold water flat. Now, we complain when people aren't able to buy a new pair of Nike's for their kids. When there are people in this world where they haven't got water to drink or a roof over their heads. We don't really have a clue as to what real poverty is.
Just my 2 cents.
www.usinflationcalculator.com
