Marketplace Flat pay raises are a sign o' the times
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Aug 19, 2025 In a bid to save costs, more companies like Starbucks are opting for flat percentage pay raises instead of merit-based increases. This shift simplifies compensation but raises questions about motivation. Meanwhile, China is enhancing trade ties with developing nations amid changing global dynamics. The discussion also touches on the challenges rural airports face with potential funding cuts, as well as ongoing concerns in the housing market, marked by a drop in building permits despite rising housing starts.
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China Deepens Ties With Developing Nations
- China has doubled trade with developing countries since 2015 and quadrupled investment over a decade.
- Beijing's reduced barriers and financing deepen ties and offer alternatives to U.S. trade for poorer nations.
Financing Without Strings Alters Influence
- China's government-backed financing often comes without labor or human-rights strings, accelerating commercial expansion.
- That access gives China geopolitical leverage in places where the U.S. traditionally used economic tools.
Why Flat Raises Save Money
- Companies shift from merit raises to flat raises to save time and reduce administrative burden.
- Flat raises often cost less than average wage growth and let firms limit total payroll increases.