Wage inflation trend: now we are all more competitive, you will be happy
Canale Sovranista has prepared a graph that compares inflation on the one hand, and the change in gross nominal pay per employee on the other. In this way, it can be assessed whether nominal wages followed inflation, while maintaining the real value of the wages themselves.
Let's see the graph:
In the 60-70-80s, except for very brief moments, there was a clear superiority of wages over inflation. This is especially visible in the 1960s, but still continues in the following two decades, despite the oil shocks of the 1970s. So this relationship ceases, and until 2012, except in 1992, when inflation is higher than wage dynamics. , remuneration moves with inflation and the difference is minimal. Then comes the fantastic new millennium. In these years we have the years 2011-2012 in which inflation is higher than the growth of wages, therefore with a decline in real remuneration. Then we have the fantastic 2020, where, in the face of inflation around zero, we have a 7% drop in remuneration.
Now, after this decline in wages, we should all be more competitive, exactly what the various Monti, the various austere pro-Europeans wanted. Yes, we killed wages, but, as written today, we also killed consumption, even taking away meaning from any productive investment. Do you feel more competitive now?
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The article Wage inflation trend: now we are all more competitive, you will be happy comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/andamento-inflazione-salari-ora-siamo-tutti-piu-competitivi-sarete-contenti/ on Thu, 10 Jun 2021 06:00:21 +0000.