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Now if we could get the Federal Reserve to give up on the idea that rising wages are inflationary, then maybe wages will keep pace with productivity growth.
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I need to be educated here. How is rising wages NOT INFLATIONARY ?

This is my straightforward way of understanding things -- If Company X has 1000 employees, and pays them on the average $20/hour, and because of wage pressure, now has to pay them $21/hour, that would mean $1000/hr more in cost to the company. How is the company going to maximize profits other than to :

A) Not hire more people;
B) Layoff more people and make the rest work harder/more ( raising productivity further )
C) Increase the price of its goods/services.

Am I missing something here ?