Labour Unions, Inflation And Minimum Wage Bargaining

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.