> they can spend it, or they can save it.

The trouble is they haven't been saving it. Savings rates is near the lowest it's been in years [0], debt is rapidly increasing [1] and we're seeing quickly increasing dipping into 401k savings [2].

I do agree with your general argument though, that this isn't about workers being paid to much. All evidence suggest that despite the increases in worker pay, more and more American's are stretching themselves to continue consuming and we've seen in plenty of places that consumption is dropping.

0. https://tradingeconomics.com/united-states/personal-savings

1. https://www.cnbc.com/2022/11/15/household-debt-soars-at-fast...

2. https://www.wsj.com/articles/short-on-cash-more-americans-ta...