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Two things: raising the min wage puts upward pressure on wages above the min also, so your estimate is not correct. Someone making min+1 will still expect to ma
by ChrisLomont 8y ago
Two things: raising the min wage puts upward pressure on wages above the min also, so your estimate is not correct. Someone making min+1 will still expect to make min+~1 after the hike. Also, inflation need not be national to be inflation.
This is why places with higher min wages tend to have higher overall wages and higher overall prices. These things do not operate in a vacuum.
Look at prices where wages are low compared to process where wages are high, e.g., SF versus smalltown Alabama.
So there is ample evidence that these things are related. By taking national averages you necessarily miss the local variation which clearly shows a price/wage correlation.