[quote=Rich Toscano]The cost of living goes up every year (even in calendar years 2008 and 2009 the cost of living went up). So if you didn’t get a raise in a given year, your compensation has actually declined.[/quote]
Not exactly. If your pay stays the same, then your pay stays the same. The purchasing power of that compensation goes down. That’s not necessarily the same as a cut in pay.
The thing is, if an employer doesn’t raise prices (or in the case of industries like tech consulting, where rates actually have fallen), then there has been no inflation in value. Should employers in industries similarly situated be obligated to give cost of living raises? Ultimately, market conditions rule. I’m just not convinced there’s any logic to automatic raises, just because another year has passed.
