Can companies shelter wage earners from a loss of purchasing power?

We look at the current situations of the United States, the euro zone and France. For wage earners to be sheltered from a loss of purchasing power, nominal wages must grow in line with consumer prices. For income distribution between wages and earnings to be stable, unit labour costs must grow in line with the GDP deflator (of corporate value added). This shows that in the event of an inflationary shock (like that today with the rise in commodity prices), one cannot have at once stable wage earner purchasing power, stab le income distribution and no fall in corporate profitability if the gap between consumer price growth and GDP deflator growth exceeds trend productivity gains. The United States does not have this problem: the gap between inflation measured by consumer prices and inflation measured by the GDP deflator is in the order of productivity gains. But the euro zone (especially) and France do have this problem, due to the gap between consumer price growth and GDP deflator growth being greater than productivity gains.