Page 17 - THE SOUTH CHINA BUSINESS JOURNAL
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one of the most popular tactics cited was A perfect storm:
increasing wages. In an inflationary environment, businesses raise
prices when input costs rise—and input costs
The bottom line: As the cost of payroll goes up, are rising right now not only for wages, but also
to maintain profitability to the extent they can, for costs of goods, shipping costs, and as a result
businesses pass along higher labor costs to their of the pandemic and U.S. monetary policy. It’s a
customers. But as prices rise, workers feel they perfect storm creating high levels of concern.
need even more money to keep up with rising
costs at the grocery store or gas pump. The solution:
We can’t get inflation fully under control until we
Economists refer to this as a wage-price fix the worker shortage crisis. To do this, the U.S.
spiral. This happens when rising wages drive Chamber has several policy solutions, part of
companies to raise prices, which, in turn, the America Works initiative, that will grow our
prompts workers to demand pay that keeps up workforce. They include:
with inflation.
1. Helping Americans acquire the skills they need
In an op-ed for CNN Business, Mike Zaffaroni, U.S. to fill today’s open jobs.
Chamber Small Business Council member and
owner of Liberty Landscape Supply in Jacksonville, 2. Improving educational and job training
FL, wrote about how inflation and the worker opportunities for the jobs of tomorrow.
shortage is impacting businesses like his:
3. Removing barriers to entering the workforce
“We've never had so many potential like a lack of access to childcare or having a
opportunities to grow, serve customers and criminal record.
sell goods and services, and at the same time
be limited in our ability to perform because we 4. Expanding the workforce through
cannot find talent. immigration reform.
We currently have 15 job openings, and would However, growing the workforce to ease the
be willing to hire even more employees in worker shortage is only part of the equation.
anticipation of additional future business There are further steps the government can
growth. Operating while 20% understaffed take to ease inflation. The Federal Reserve
forces us to increase wages to attract more team has already begun to raise interest rates in an
members. We then must raise wages for existing important step toward cooling demand. Other
staff to remain equitable. Our entry-level wages solutions to ease inflation include cutting tariffs
have increased 27% in the last 12 months. and increasing domestic energy production.
To pay the higher wages to our new and We are calling on policymakers to take immediate
existing team members, we are raising our action to help fix the worker shortage and curb
prices to hold our gross and profit margins and inflation—a perfect storm causing soaring prices
stay afloat.” for American businesses and families.
SOUTH CHINA BUSINESS JOURNAL 14
increasing wages. In an inflationary environment, businesses raise
prices when input costs rise—and input costs
The bottom line: As the cost of payroll goes up, are rising right now not only for wages, but also
to maintain profitability to the extent they can, for costs of goods, shipping costs, and as a result
businesses pass along higher labor costs to their of the pandemic and U.S. monetary policy. It’s a
customers. But as prices rise, workers feel they perfect storm creating high levels of concern.
need even more money to keep up with rising
costs at the grocery store or gas pump. The solution:
We can’t get inflation fully under control until we
Economists refer to this as a wage-price fix the worker shortage crisis. To do this, the U.S.
spiral. This happens when rising wages drive Chamber has several policy solutions, part of
companies to raise prices, which, in turn, the America Works initiative, that will grow our
prompts workers to demand pay that keeps up workforce. They include:
with inflation.
1. Helping Americans acquire the skills they need
In an op-ed for CNN Business, Mike Zaffaroni, U.S. to fill today’s open jobs.
Chamber Small Business Council member and
owner of Liberty Landscape Supply in Jacksonville, 2. Improving educational and job training
FL, wrote about how inflation and the worker opportunities for the jobs of tomorrow.
shortage is impacting businesses like his:
3. Removing barriers to entering the workforce
“We've never had so many potential like a lack of access to childcare or having a
opportunities to grow, serve customers and criminal record.
sell goods and services, and at the same time
be limited in our ability to perform because we 4. Expanding the workforce through
cannot find talent. immigration reform.
We currently have 15 job openings, and would However, growing the workforce to ease the
be willing to hire even more employees in worker shortage is only part of the equation.
anticipation of additional future business There are further steps the government can
growth. Operating while 20% understaffed take to ease inflation. The Federal Reserve
forces us to increase wages to attract more team has already begun to raise interest rates in an
members. We then must raise wages for existing important step toward cooling demand. Other
staff to remain equitable. Our entry-level wages solutions to ease inflation include cutting tariffs
have increased 27% in the last 12 months. and increasing domestic energy production.
To pay the higher wages to our new and We are calling on policymakers to take immediate
existing team members, we are raising our action to help fix the worker shortage and curb
prices to hold our gross and profit margins and inflation—a perfect storm causing soaring prices
stay afloat.” for American businesses and families.
SOUTH CHINA BUSINESS JOURNAL 14
