It is beyond dispute that the employer must adjust the wages to inflation. First, it is rational to do so because if not, there wouldn't be any demand, and the employer's business would then fail. Second, inflation generally means a rise in prices of goods, but also a rise in salaries. Logically, the employer must be able to adjust the wages to the inflation.
I truly believe that employers should give an annual wage increase in line with inflation. Companies that do not are actually giving their employees a real time pay cut, as the dollar buys less and less each year. No doubt the employers increase their prices in line with inflation, so why not pass this on to the staff?
I wholeheartedly feel employers need to match their wages with inflation. By not doing so they add the working poor percentage. If a person is working they should be making enough to live, no questions asked. The other side of that is how they live. I am not speaking for wages consistent with an extravagant lifestyle, just enough to pay the bills and put food on the table.
If employers want to attract the best candidates in their given field, they should be motivated to offer a competitive wage and benefits package. If they low-ball, then they won't attract capable staff vs. Competitors, will they?
That said, right now, it's an employer's market. There are so many well educated and highly experienced people out there under or unemployed it's not funny. Even so, it's still not the gov'ts place to tell private employers when they should raise wages. Want to make more money? Earn skills useful to employers!
I do not think employers should be required to match or raise their wages in line with inflation. It is up to an employer to decide how much he wants to pay his employees, and how much he can afford. It is then up to the employees to decide if they wish to work for those wages, or move to another employer. That is the basis of the free market.
In a perfect world that would be feasible but unfortunately if a lot of businesses did this it would put them out of business. Times are tough and putting food on the table and paying bills is getting harder every day. We are all going to have to make adjustments and revamping the welfare system would take a load off of everyone.
Employers cannot bear the entire burden of taking care of the general public. An employer can only pay an employee as much as the employer can afford. If the employer can afford to pay the employee $10/hour, but the government says the employer must pay them $20/hour, the employer is not going to be able to offer the job.