2 ms·
> Increasing the minimum wage from 5 to 50 dollars is unlikely to cause a 10x inflation, it more likely would cause a 3x or 5x inflation. I' guessing it would
by badpun 8y ago
> Increasing the minimum wage from 5 to 50 dollars is unlikely to cause a 10x inflation, it more likely would cause a 3x or 5x inflation.
I' guessing it would rather create massive unemployment, and subsequently be cancelled. Think about it - middle-class people are ok with paying $4 for their Starbucks coffee, but if they were to pay say $10 (because the baristas salaries just tripled), probably a lot of them would cut back on them. Maybe even Starbucks would disappear altogether. Multiply that effect across all industries hiring minimum-wage workers. It would be a train wreck.
- hexane360 8y agoMost of Starbuck's cost doesn't come from paying baristas. It comes from coffee, real estate, utilities, and corporate. Here's some real world evidence: https://www.washington.edu/news/2016/04/18/early-analysis-of-seattles-15-wage-law-effect-on-prices-minimal-one-year-after-implementation/ https://www.washington.edu/news/2016/04/18/early-analysis-of... https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5615576/ https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5615576/ https://en.wikipedia.org/wiki/Minimum_wage#Empirical_studies https://en.wikipedia.org/wiki/Minimum_wage#Empirical_studies