This will cause a bit of inflation as these goods will become a bit more expensive. But the bulk of goods that we purchase are more elastic. Produces generally try to keep labor costs between 20% to 35% of their revenue, so we will see a small jump in the price of inelastic goods, but this is ultimately insignificant in comparison to the expansion in M2 that we saw earlier. In addition, think back to the fundamentals of cost-push inflation.
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Higher paid workers are more productive, and automation has resulted in decades of increased output with few increases in wages to match it. While the total production costs will go up, this money ends up back in the hands of domestic consumers/workers and not in the hands of foreign suppliers. This increase in consumer spending allows firms to operate on lower margins.