Eventually that could get itself renegotiated,but it would take a long time.
Certainly the standard tenure provision in university contracts draws sharp distinction between nominal declines and real declines. Would nominal wages have started to fall if the inflation rate had been low? Perhaps, but not as easily as in an inflationary environment. I suspect that those under 35 would have fallen victim to lower staffing requirements if real wages had not been able to fall. What would have happened? Scholars over age 35 probably would have kept their jobs. Had we been in a 2 percent inflation era, real wages would have fallen by only 20 percent. For example, the real wage of college professors fell by 30 percent between 19. That is, zero inflation in an economy that grows as slowly as the American economy now grows would mean either significant nominal wage cuts or unemployment. The next one does, but I think that it”s a plausible view.
Rudolf Would you like a receipt? geniux pillsThe preceding argument did not assume that people would be irrational or suffer from money illusion.
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