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Prices for labor and commodities are up due to inflation

silisili 5y ago
That's always been my fear, in a way. I've long been a proponent for higher minimum wages, and met with folks telling me it would raise the price of everything. On paper, they were wrong. Today we see it play out, and they are right. But not because they were strictly right, but by happenstance inflation hit everything. Good luck convincing those folks now, I guess.
- throwaway6734 5y ago
  It seems like you're ignoring that we're coming out of a global pandemic which has led to reduced productivity and efficiency resulting in a goods shortage.
- throw0101a 5y ago
  > Today we see it play out, and they are right. Or, you know, the (global) supply chain is clogged. > It’s been a troubled few months on the economic front. Inflation has soared to a 28-year high. Supermarket shelves are bare, and gas stations closed. Good luck if you’re having problems with your home heating system: Replacing your boiler, which normally takes 48 hours, now takes two or three months. President Biden really is messing up, isn’t he? > Oh, wait. That inflation record was set not in America but in Germany. Stories about food and gasoline shortages are coming from Britain. The boiler replacement crisis seems to be hitting France especially hard. […] > In other words, the problems that have been crimping recovery from the pandemic recession seem, by and large, to be global rather than local. That’s not to say that national policies are playing no role. For example, Britain’s woes are partly the result of a shortage of truck drivers, which in turn has a lot to do with the exodus of foreign workers after Brexit. But the fact that everyone seems to be having similar problems tells us that policy is playing less of a role than many people seem to think. And it does raise the question of what, if anything, the United States should be doing differently. > So why does the whole world seem to be running on empty? * https://www.nytimes.com/2021/10/29/opinion/inflation-global-supply-chains-us.html https://www.nytimes.com/2021/10/29/opinion/inflation-global-... * https://archive.md/fjwyl https://archive.md/fjwyl
- lotsofpulp 5y ago
  >That's always been my fear, in a way. I've long been a proponent for higher minimum wages, and met with folks telling me it would raise the price of everything. On paper, they were wrong. Even on paper, they were not wrong. The point of raising minimum wages (which has not happened federally in the US), is to transfer wealth from those who have it to those who do not. The goal would be for labor prices at the the low end to increase faster than prices, so that the people who were previously consuming more have to consume less, and the people who had to consume minimally can consume more. When the poor kid who has to work at burger king doubles his wage, the hope is that he can have enough money to save for a somewhat reliable car, at the expense of a richer kid being unable to eat burger king as often.
  - imtringued 5y ago
    >The goal would be for labor prices at the the low end to increase faster than prices, so that the people who were previously consuming more have to consume less, and the people who had to consume minimally can consume more. You're right but the real problem is that those who have the money don't actually spend it on consumption. If they did then you wouldn't need to raise the minimum wage as there would be enough well paying job opportunities for everyone.
- nuclearnice1 5y ago
  A lot of other people have pointed out the current circumstances are extraordinary and possibly not a good read through for a legislative minimum wage increase. Another POV, anecdotally, from the article: > Matt and his best friend from McDonald’s, David Putnam, were making $12 an hour at Tim Hortons doughnut shop. The extra money meant David, who was raising his 2-year-old son on his own, no longer needed donated food from the “Blessing Box” near his house. He had recently even been able to treat his mother and stepfather to dinner at the Hunan Buffet across the parking lot from his new job. If those are the consequences, bring it on.
- sudosysgen 5y ago
  But the minimum wage hasn't increased. The supply of money increased. It's not even close to the question being considered.
  - throw0101a 5y ago
    > The supply of money increased. And that money isn't doing much: * https://fred.stlouisfed.org/series/M2V https://fred.stlouisfed.org/series/M2V
    - imtringued 5y ago
      Everyone shouts how adding more money will make everything more expensive. In some countries the added dollars don't even circulate once. Inflation is dead.

That's always been my fear, in a way. I've long been a proponent for higher minimum wages, and met with folks telling me it would raise the price of everything. On paper, they were wrong. Today we see it play out, and they are right. But not because they were strictly right, but by happenstance inflation hit everything. Good luck convincing those folks now, I guess.

throwaway6734 5y ago
It seems like you're ignoring that we're coming out of a global pandemic which has led to reduced productivity and efficiency resulting in a goods shortage.
throw0101a 5y ago
> Today we see it play out, and they are right. Or, you know, the (global) supply chain is clogged. > It’s been a troubled few months on the economic front. Inflation has soared to a 28-year high. Supermarket shelves are bare, and gas stations closed. Good luck if you’re having problems with your home heating system: Replacing your boiler, which normally takes 48 hours, now takes two or three months. President Biden really is messing up, isn’t he? > Oh, wait. That inflation record was set not in America but in Germany. Stories about food and gasoline shortages are coming from Britain. The boiler replacement crisis seems to be hitting France especially hard. […] > In other words, the problems that have been crimping recovery from the pandemic recession seem, by and large, to be global rather than local. That’s not to say that national policies are playing no role. For example, Britain’s woes are partly the result of a shortage of truck drivers, which in turn has a lot to do with the exodus of foreign workers after Brexit. But the fact that everyone seems to be having similar problems tells us that policy is playing less of a role than many people seem to think. And it does raise the question of what, if anything, the United States should be doing differently. > So why does the whole world seem to be running on empty? * https://www.nytimes.com/2021/10/29/opinion/inflation-global-supply-chains-us.html https://www.nytimes.com/2021/10/29/opinion/inflation-global-... * https://archive.md/fjwyl https://archive.md/fjwyl
lotsofpulp 5y ago
>That's always been my fear, in a way. I've long been a proponent for higher minimum wages, and met with folks telling me it would raise the price of everything. On paper, they were wrong. Even on paper, they were not wrong. The point of raising minimum wages (which has not happened federally in the US), is to transfer wealth from those who have it to those who do not. The goal would be for labor prices at the the low end to increase faster than prices, so that the people who were previously consuming more have to consume less, and the people who had to consume minimally can consume more. When the poor kid who has to work at burger king doubles his wage, the hope is that he can have enough money to save for a somewhat reliable car, at the expense of a richer kid being unable to eat burger king as often.
- imtringued 5y ago
  >The goal would be for labor prices at the the low end to increase faster than prices, so that the people who were previously consuming more have to consume less, and the people who had to consume minimally can consume more. You're right but the real problem is that those who have the money don't actually spend it on consumption. If they did then you wouldn't need to raise the minimum wage as there would be enough well paying job opportunities for everyone.
nuclearnice1 5y ago
A lot of other people have pointed out the current circumstances are extraordinary and possibly not a good read through for a legislative minimum wage increase. Another POV, anecdotally, from the article: > Matt and his best friend from McDonald’s, David Putnam, were making $12 an hour at Tim Hortons doughnut shop. The extra money meant David, who was raising his 2-year-old son on his own, no longer needed donated food from the “Blessing Box” near his house. He had recently even been able to treat his mother and stepfather to dinner at the Hunan Buffet across the parking lot from his new job. If those are the consequences, bring it on.
sudosysgen 5y ago
But the minimum wage hasn't increased. The supply of money increased. It's not even close to the question being considered.
- throw0101a 5y ago
  > The supply of money increased. And that money isn't doing much: * https://fred.stlouisfed.org/series/M2V https://fred.stlouisfed.org/series/M2V
  - imtringued 5y ago
    Everyone shouts how adding more money will make everything more expensive. In some countries the added dollars don't even circulate once. Inflation is dead.