I know. More talk about money and finance at a time when you probably have less money and a greater concern about where we go from here. Nonetheless, this is worth understanding:
There are two, and only two, reasons why somebody should get a raise. The first reason is that the money that is being used to pay the salary is being devalued (inflation). But that sort of raise is just getting you to tread water in a rough sense. You’re not really getting ahead because inflationary price rises eat up the entire salary increase and usually more. The second thing is that productivity has risen and you’re creating more goods or services for the same inputs. This is labor productivity. It is the one thing that allows for real sustainable rises in wages.
Productivity. It’s what buys whatever is for dinner.