The point is that relative wages need to be adjusted as the value of jobs changes over time. Some work that was very valuable in the past might have low demand now. If wages are sticky then jobs where value drops faster than inflation will simply go away. That's not necessarily the best outcome if the employee could have coped with a pay cut.
High inflation does not imply that real wages shrink on average.
>High inflation does not imply that real wages shrink on average.
Certainly not! Inflation is great for the privileged, because it forces the hoi polloi into investment schemes to protect their assets from inflation, which disproportionately help finance the business adventures of the privileged (e.g. stocks, bonds).
Thus the average real wage will get higher as a few select individuals get huge astronomical wages.
I wonder if this isn't the US trying to solve its inability to work with Labor using inadequate macro tools. In workplaces where workers have a voice in management, like my country's Volkswagen plant, pay cuts seem possible to implement.
High inflation does not imply that real wages shrink on average.