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Would that defeat the point of inflation?
by noja 7y ago
Would that defeat the point of inflation?
- smileysteve 7y agoIf anything, that would enforce it more. Where the point of inflation is to force people to spend or invest their money today over keeping it as a store of value.
- learc83 7y agoNo because 1. It only impacts a small percentage of workers. 2. It's a wealth transfer--money isn't created to pay it.
- wffurr 7y agoNo, prices could still go down in real terms by remaining constant. The same for above minimum wage rates. But by continually raising the floor, we make sure it doesn't get too far below the median or mean. That should be in everyone's best interest, both in terms of keeping the economy going by consumer spending and in terms of fairness and not having a desperately poor underclass.
- donatj 7y agoI would think if anything it would accelerate inflation, as it raises the price floor on what stores can ask for basic items.
- pbhjpbhj 7y agoThe point of inflation is to reduce the wages paid to poor people?
- clairity 7y agoinflation is used to drive economic activity by keeping people from sitting on money (because it devalues over time). so do you think putting more money in the hands of minimum-wage workers will cause them to hoard money? what do you think is the point of inflation?