Comment by fxtentacle

"With an additional million or two people out of work, the newly unemployed and their families would sharply cut back on spending, while for most people who are still working, wage growth would flatline. When companies assume their labor costs are unlikely to rise, the theory goes, they will stop hiking prices. That, in turn, slows the growth in prices."

That seems like a pretty whacky theory to me because it assumes that companies only increase prices when forced to do so, and not just because they can.