Productivity increases can and do offset wage increases.The wages part and the “fear” around higher wages being stickier has always been a dumbfounding fear to me. For years, everyone was talking about “wage growths is sorely needed”. Now we get it and everyone’s complaining.
Granted it’s coming at a time when other costs are being artificially inflated due to Covid production stoppages from the past year, but if/when those costs start their downward trend, wages still be higher. Which a net plus for the economy