wage price spiral


A feedback loop in which wage hikes due to inflation cause companies to raise prices, and those rising prices lead to demand for further wage increases, perpetuating the cycle.

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There was a wage price spiral and things got out of control in the environment and we were having problems.

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There is significant concern that the recent push for significant increases in the minimum wage will result in a wage price spiral leading ultimately to higher prices and the resultant need for additional increases to minimum wage.

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Fearing that America was in the early stages of a wage price spiral, President Ford launched his Whip Inflation Now (WIN) campaign in 1974 to encourage Americans to hold back on wage increases and seek lower prices to temper high inflation rates before they became self-perpetuating.

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