Economists are warning that America is in the midst of a wage-price spiral. It’s when workers demand increases in pay due to inflation, businesses respond, and then increase prices to pay for the outlay in new expenses. It’s a pattern that is continuing to repeat, and economists say it’s throwing the country into a wage-price spiral that could last for a long time and exacerbate inflation. The end result may be painful.
What is at the heart of the catch-22?