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"There are several problems with this simplified view of the economy. Namely that the inflation rate is not realistically tied to minimum wage in any way." 'Si
by pink_dinner 11y ago
"There are several problems with this simplified view of the economy. Namely that the inflation rate is not realistically tied to minimum wage in any way."
'Simplified' is believing that raising the minimum wage to $15/hour is a great solution to an increase in spending power (as opposed to a person learning a new skill and increasing their own value).
My view is complicated and nuanced and displays the unintended consequences of a raise in the minimum wage.
What do you think will happen when the costs of everything in a supply chain of a company is doubled? They will pass it onto the consumer.
When the majority of companies do this (which will definitely happen), everyone's spending power is decreased. The dollar doesn't go as far as it used to.
Realistically, it's hard to see how inflation isn't tied to a raise in minimum wage.
- Thetawaves 11y ago"What do you think will happen when the costs of everything in a supply chain of a company is doubled? They will pass it onto the consumer." Of the 77.2 million workers earning an hourly wage, only 1.3 million were earning a minimum wage. The notion that 'costs of everything in the supply chain of a company' will double completely ignores the fact that only a small portion of all work is paid minimum wage. "When the majority of companies do this (which will definitely happen), everyone's spending power is decreased. The dollar doesn't go as far as it used to." Inflation has increased while the minimum wage has remained stagnant. There are volumes of money flowing elsewhere that are several orders of magnitude higher than the GDP of minimum wage earners. src: http://www.bls.gov/opub/reports/cps/characteristics-of-minimum-wage-workers-2014.pdf http://www.bls.gov/opub/reports/cps/characteristics-of-minim...