Challenging the Conventional View of Wage-Price Spiral

The podcast challenges the conventional view of the wage-price spiral theory, which suggests that labor unions driving up wages lead to higher prices, creating a cycle of inflation. Economist Brian Cutzinger argues against this notion, highlighting that attributing inflation solely to unions oversimplifies the complex factors at play. Cutzinger emphasizes that while market power in the labor sector can impact wages and prices, the magnitude required to significantly contribute to inflation is implausibly large, undermining the validity of solely blaming unions for price increases.