singron@lemmy.worldtoLemmy.World Announcements@lemmy.world•I'm hearing Lemmy itself, the .ml instance and some others are ran by Tankies that censor criticism of russia and china. What are your thoughts on this?English
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1 year agoThey are geologically young: under 1 million years old.
Economists think that directly tying wages or prices to inflation can cause inflationary spirals. CPI is based on prices, and raising wages will eventually raise prices and CPI, so if you raise wages based on CPI, it can enter a positive feedback loop.
It might be ok if the feedback is slow enough or if the minimum wage influences a macroeconomically insignificant proportion of wages.