Yes, because wages suck but cost increases are considerably more compared to wages..
When costs go up eg. food prices, fuel prices, utility situations then the law should be that those on the LOWER wages then ALL the LOWER wages are increased to cover the costs of the new increases. All of that crowd cannot cover the increases in costs and have to reduce what they pay for quality foods to be replaced by crap foods that are unhealthy and also many are getting into debt. I know that American Conservatives are going to STRONGLY disagree with my comments, perhaps it's just a European thing and at one time the lowest wages did used to rise at the same rate as Inflation, Wages and Inflation were connected together.
That's not necessarily true, Lucy, most middle income jobs are definitely not paying what they once did, all one needs to do is go back and look at what a position payed 25 years ago and then use the inflation calculator to find that income has NOT kept up with inflation! So the dollar you are being paid is worth less.
The other and more insidious factor is the ACA's "Shared Responsibility." Years ago, employers paid 100% of your medical. At least every job I ever had did. That Shared Responsibility, your portion of your healthcare, PLUS the deductible plans now carry (deductibles used to be practically nothing), takes a HUGE bite out of your income! That is like taking a big pay cut (you used to make more + got full health coverage).
As former CEO of two companies, I know the dollar value is part of the calculation in expenses and profits, therefore, as the dollar loses value, employers SHOULD be able to increase wages just to keep you even. On top of that, the ACA and the Shared Responsibility clause has been a HUGE savings in corporate business overhead.
By your reasoning, if increasing wages forces the increase of domestic product consumer costs, then the concomitant DECREASE in employee costs by keeping wages flat in a devalued dollar + the transfer of a large share of heath costs to the employee SHOULD have effected a significant INCREASE in wages.
It has not.
Nor has consumer product costs dropped according to your metric. Indeed, they have never stopped going up.
The average middle income worker is getting BONED.