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Are you suggesting that raising the minimum wage will increase inflation? That seems theoretically plausible to me, I suppose, but I haven't seen any evidence f
by xirbeosbwo1234 6y ago
Are you suggesting that raising the minimum wage will increase inflation? That seems theoretically plausible to me, I suppose, but I haven't seen any evidence for it happening in practice. We have had plenty of natural experiments where one region has raised the minimum wage while its neighbours have not. Do you have any information about what happened to inflation in those cases?
I am entirely convinced that an increase to the minimum wage (perhaps not as high as $15/hr) will have no major effect on employment. That idea is contradicted by all the empirical evidence we have. I have not seen enough evidence to draw a conclusion on inflation.