Inflation and wages are kind of a chicken or egg issue.
Do higher prices cause higher wages or do higher wages cause higher prices?
I suppose it’s probably a little of both.
There is an obvious relationship when you look at the data.
Here’s a look at year-over-year wage growth versus trailing twelve-month inflation going back to 1965:
Wages grow faster than prices most of the time, but not always. Since 1965,...