Cash flow becomes tighter with associate salary increases

Adam Smith has a nice piece on the recent associate salary increases to $160,000.  It’s hard, however, to feel sympathetic to law firms where the disparity between partners and associates continues to increase. Of course, law firms merely reflect their corporate clients where the CEO compensation (sometimes at hundreds of millions of dollars) is far greater than the rank-and-file compensation than at any other time in our history.

Will clients change their purchasing habits. If history is a teacher, the answer will be "not significantly."

Ultimately, who pays for these increases? Us. Consumers. That’s why they call it inflation.


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