They can, and they always do. Yet for some reason people argue that they won’t, every time wage increases become a conversation.
Well, their problem is they already planned to increase prices with zero added benefit to employees or customers. Asking them to actually contribute something in exchange for their gains? Psshhh
Yes, but now they’ll increase them twice, or twice as much. I know, I know, there are economic studies that say otherwise and the general consensus on the left is that prices don’t increase when wages do. I recognize that personal experience doesn’t hold a candle to scientific information. Yet, every single time I’ve seen wages go up in my entire life, the prices soon follow, wiping out the improvements for minimum wage workers and further eroding spending power for the middle class. The poor stay just as poor, the middle class shrinks a little, and the wealthy aren’t impacted at all. I’ve read studies that say differently, but it’s pretty hard to ignore a lifetime of experience. Now please recognize that I’m not advocating against a wage increase. I’m advocating for a law alongside the wage increase that blocks any associated price increases.
That’s not a bad idea.
What would also help is an actually meaningful wage increase that isn’t just a handful of crumbs thrown out to give politicians something to brag on for their campaigns. Something that actually keeps pace with the cost of living increases, and makes up for decades of failing to make such increases.
I suspect your right, though, that it will always end up with the wealthy even wealthier, until we address them directly and start making laws with teeth that curb their hoarding of that wealth and stomp on their ability to influence policy with it.
Restricting your own wage increase in the hope that companies won’t add to inflation is very much like trying to be extra nice to an abusing partner in the hope that they won’t hit you.
I know that you later wrote that you’re in favor of a law restricting their ability to increase prices so please take this as an aside.