₦airaland Forum

Labour unions, inflation and minimum wage bargaining


Wage increase does not cause inflation. What causes inflation is money printing.

The idea that if government increases wages then prices will go up is wrong because if the amount of money in circulation remains the same then prices will not rise unless the cost of production rose sharply.

This is why labour unions should be more concerned about stopping government from printing money recklessly than on asking for wage increase. Believe it or not, if no money printing for ten years in any country then prices will begin to drop and loan interest rates will also drop sharply.

If you force government to raise wages as a labour union, it is easy to deduce that they will print money to offset the new expenses. That is how the ten million naira of 2026 Nigeria came to be having the purchasing power of less than 1000 naira in 1970 Nigeria.


What should you do as a labor union?

Ask government to have a high government revenue to GDP ratio because with high revenue, the government will have less need for inflation or money printing. No government is inherently evil in any way. Not having a clue is not evil and not being an expert is not evil. Most people would do better if they know better

Then ask for a minimum wage that is at least ten times the cost of accomodation of a single person living alone in a one room apartment.

What's the % of the government workers in Nigeria labour force?

helinues:
What's the % of the government workers in Nigeria labour force?

You are in the US and instead of you to say minimum wage must be enforced on all employers you are asking how many people are in government employ?

Where you are that people save to escape to, do minimum wage apply to only government workers?

lawani:
You are in the US and instead of you to say minimum wage must be enforced on all employers you are asking how many people are in government employ?

Where you are that people save to escape to, do minimum wage apply to only government workers?

When did I tell you that I am in USA? is that even the question I asked

helinues:
When did I tell you that I am in USA? is that even the question I asked

I have read you on this site if I remember right saying you live in THE USA. It doesn't matter though since you are anonymous

The point is that minimum wage should apply to all employers as it was meant to be. There was minimum wage in the western state of Nigeria in the 1950s and it applied to all employers
What is the use of a minimum wage applied on only government workers and the OPS?

lawani:
I have read you on this site if I remember right saying you live in THE USA. It doesn't matter though since you are an anonymous

The point is that minimum wage should apply to all employers as it was meant to be. There was minimum wage in the western state of Nigeria in the 1950s and it applied to all employers
What is the use of a minimum wage applied on only government workers and the OPS?

You are probably mistaken me for someone else.

I asked you basic question about your own theory on what causes inflation but you couldn't answer

Wage increase in the case of Nigeria will trigger inflation because it is a form of money-printing.