According to wage-price spiral, if company gives a worker a raise in pay, they must also raise the price of products.
A wage-price spiral, also known as a wage/price spiral or a price/wage spiral, is a theory put out by macroeconomists to explain why inflation occurs when wages rise in a positive feedback loop where rises in prices lead to salary increases. When aggregate demand and aggregate supply cross each other over time, the economy eventually goes back to that point." 1868 marked the first time the idea was used. A 1937 New York Times article about a steelworkers' strike first used the phrase "wage-price spiral." A price freeze was imposed in the 1970s by US President Richard Nixon in an unsuccessful attempt to stop what he perceived as a "spiral" of costs and prices.
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