What do you think comes first, higher costs or higher pay? Don’t worry, I will answer for you. It’s cost every single time. That’s inflation. So, when you have the same amount of money and your dick boss doesn’t want to give you a raise, what do you think happens? I will answer this too. You have to buy less. But why zeel, why? Because inflation can make how much things cost you go up quickly. But it doesn’t make the money in your hand worth more. It actually makes it worth less. But why? Fester no understand. Well you see, when that dollar was enough for that candy bar, but now you need 1.5 of them for the same candy bar, that dollar isn’t worth as much. Our money is only worth as much as it can buy.
Then there is this thing called capitalism where the rich get richer and the poor get poorer. Compression happens when the pay for those at the bottom is moving so slow, that the minimum wage often by force of the government hets raised. But no it gets too close to those who manage minimum wage workers. So, companies now feel forced to also raise the pay of managers. But Joe owner and Jane CEO don’t want to lose money either. So they raise prices to make sure they are still rich as fuck.
Meanwhile, Mr, Inflation keeps going up. And did I forget to tell you? Many employees didn’t get a pay bump because as it turns out, compression didn’t reach them. But this is likely middle managers.
While this is happening money seems to be disappearing faster than usual. Why you ask? I got you again. Well, when you have the same amount of money but things cost more, your money doesn’t last as long.
All these money problems starts to create fear. When people are financially scared, they slow down spending. Spending less is bad for the economy. Bad for the economy is bad for stocks. Bad for stocks mean stocks go down. Inflation means stocks go down.
Now Fester, before you look any stupider, please read. No not Twitter. Like google what I am saying. Please try to learn something.