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> But similar to the problems with minimum wage, this 70k wage minimum significantly compresses the distribution instead of just changing the mean. Yea, I mean
by konschubert 8y ago
> But similar to the problems with minimum wage, this 70k wage minimum significantly compresses the distribution instead of just changing the mean.
Yea, I mean, that's kind of the point. You really have it backwards:
If you just multiply all salaries in society with 2, inflation will eat it all up.
In order to achieve a more equal society, you have to raise the lower salaries more than the higher ones.
Now, of course, you may say you don't WANT a more equal society, but ... ever wondered why US politics have become such a mess?
- 1123581321 8y agoYou have to lower the high salaries as well, or cause some people to exit the workforce, to prevent inflation from raising low salaries if output doesn’t change.