Opinion
Opinion

When Wage Growth Falls Short of Inflation

When Wage Growth Falls Short of Inflation
A person walks past the office of the California Employment Development Department in Sacramento, Calif., on Dec. 18, 2020. Rich Pedroncelli/AP Photo
Law Ka-chung
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Commentary

In an era of inflation, strikes are everywhere, and workers are suffering. Had their wages kept pace with inflation, they would not be grumbling about wanting to be treated better. Academics say wage-price exhibits a spiral, meaning that they reinforce each other. So, why is it that wage growth always seems to be slower than that of prices (inflation)?

Law Ka-chung
Law Ka-chung
Author
Law Ka-chung is a commentator on global macroeconomics and markets. He has been writing numerous newspaper and magazine columns and talking about markets on various TV, radio, and online channels in Hong Kong since 2005. He covers all types of economics and finance topics in the United States, Europe, and Asia, ranging from macroeconomic theories to market outlook for equities, currencies, rates, yields, and commodities. He has been the chief economist and strategist at a Hong Kong branch of the fifth-largest Chinese bank for more than 12 years. He has a Ph.D. in Economics, MSc in Mathematics, and MSc in Astrophysics.
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