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In the opinion of entrepreneurs, profits must become increasingly higher.
Wages have increased more than before. However, they lag behind price increases. Wage increases are a response to price increases and not the other way around.
Moreover, employees had to resort to strike more often than before to achieve a reasonable wage increase. Companies invariably state that they raise prices because of costs, and wages are always mentioned.
The reality is that inflation is not caused by wages but by the profit spiral. In the opinion of entrepreneurs, profits must become increasingly higher. An FNV survey among listed companies showed that profits have risen much more than wages. The representatives of small and medium-sized businesses invariably state that they are the victims of the wage bill. According to this employers’ organization, the wage increases are unaffordable.
They avoid mentioning the rising profits. The AIQ (which part goes to capital and wages) shows that wages are lagging behind. Profits at small and medium-sized businesses have also risen in a number of years and wages have lagged behind. A while ago, even entrepreneurs fans Mark Rutte and Klaas Knot thought that wages should rise because they lagged behind the profits of capital. They were right.
Klaas Knot has now returned to his mantra: wages must rise less. Apparently he has no active memory of his previous calls.
