Not necessarily in this situation...rising prices in our current state of high unemployment and even higher under-employment will not necessarily result in higher salaries. What rising prices will do is put pressure on those frozen or non-existant paychecks - more money will be drained for basic necessities and less will be available for discretionary spending. For the mass of people in America with high debt to pay off, those rising prices also mean that there will be less available to pay down or service that debt.
What this does is provide very short term help to the government's balance sheet...at a high price later on. Kick the can down the road to the next election. Just keep the lid on the boiling pot...but it may well be a fool's bet for them because they are damned if they do and damned if they don't.
The financial pressure put on an already battered public straining to just make ends meet could create a bigger explosion than the government not being able to keep it's departments operating for lack of ability to borrow more funds.
Very interesting take, however based on other examples around the world, demonstrations and violence typically start when the government unions have their gravy train interrupted. Seldom have the producers started these activities. I think this is the bet Obama is making, specifically that he can sacrifice the private sector for the next two years while continuing to artificially support government entities. Case in point - WSJ today reported GM was getting a $40,000,000,000+ tax break. The UAW is essentially now a government supported union. I have seen riots in Detroit and I will guess I will see them again. His lifting the cap for bailing out the GSEs (Fannie & Freddie) also support this notion.
Find a safe place my friend.