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> The cost of everything keeps increasing and honestly, depending on where you live even at 20 dollars an hour it will be hard to make ends meet. And if you bu

> The cost of everything keeps increasing and honestly, depending on where you live even at 20 dollars an hour it will be hard to make ends meet. And if you bump everyone to $20, things will get more expensive and then you'll have to bump them to $22, and then everything will get more expensive so you'll...

snewman 4y ago
This is so exaggerated as to be silly. The cost of "things" has many components, and only a small fraction of them trace back to the hourly wage of low-paid domestic workers. Increasing low-end wages by 10% does not result in 10% additional inflation.
HarryHirsch 4y ago
A wage-price spiral would be preferable to the asset inflation that two decades of zero-interest policy have brought us.
300bps 4y ago
I think you’ve just invented the Wage-Price Spiral. https://en.m.wikipedia.org/wiki/Wage-price_spiral https://en.m.wikipedia.org/wiki/Wage-price_spiral
chownie 4y ago
Except that's not at all true. Historic raises in the minimum wage did not cause an inflationary response in goods nor currency.
- gruez 4y ago
  >Historic raises in the minimum wage did not cause an inflationary response in goods nor currency. The "historic raises in the minimum wage" were also very conservative and decried by proponents of $15/$20/whatever minimum wage as being too low. A one time pay bump won't cause serious issues, but giving in to ever increasing demands for minimum wage (ie. $15 last year, $20 this year, $25 the year after) will.
  - otikik 4y ago
    May I ask what are your sources for that claim? Honest question.
  - XorNot 4y ago
    Minimum wage should be going up all the time to keep it inline with inflation. That's the point of minimum wage. Minimum wage used to ride regularly, then since 2005 has remained constant while in real terms reducing by about 40% [1] https://www.statista.com/statistics/1065466/real-nominal-value-minimum-wage-us/ https://www.statista.com/statistics/1065466/real-nominal-val...
    - gruez 4y ago
      > Minimum wage should be going up all the time to keep it inline with inflation. That's the point of minimum wage. Except that if you adjusted the minimum wage in 2005 to account for inflation, you'll only get $7.93 today[1]. I doubt the people clamoring for a $20 minimum wage today are doing it on the basis of "keeping up with inflation". [1] https://fred.stlouisfed.org/series/CPIAUCSL https://fred.stlouisfed.org/series/CPIAUCSL
cycomanic 4y ago
Considering that at the same time that inflation has been at the highest in years, corporate profits have been the highest ever. Maybe those two are much more related than wage and inflation?

snewman 4y ago

This is so exaggerated as to be silly. The cost of "things" has many components, and only a small fraction of them trace back to the hourly wage of low-paid domestic workers. Increasing low-end wages by 10% does not result in 10% additional inflation.

HarryHirsch 4y ago

A wage-price spiral would be preferable to the asset inflation that two decades of zero-interest policy have brought us.

300bps 4y ago

I think you’ve just invented the Wage-Price Spiral. https://en.m.wikipedia.org/wiki/Wage-price_spiral https://en.m.wikipedia.org/wiki/Wage-price_spiral

chownie 4y ago

Except that's not at all true. Historic raises in the minimum wage did not cause an inflationary response in goods nor currency.

gruez 4y ago
>Historic raises in the minimum wage did not cause an inflationary response in goods nor currency. The "historic raises in the minimum wage" were also very conservative and decried by proponents of $15/$20/whatever minimum wage as being too low. A one time pay bump won't cause serious issues, but giving in to ever increasing demands for minimum wage (ie. $15 last year, $20 this year, $25 the year after) will.
- otikik 4y ago
  May I ask what are your sources for that claim? Honest question.
- XorNot 4y ago
  Minimum wage should be going up all the time to keep it inline with inflation. That's the point of minimum wage. Minimum wage used to ride regularly, then since 2005 has remained constant while in real terms reducing by about 40% [1] https://www.statista.com/statistics/1065466/real-nominal-value-minimum-wage-us/ https://www.statista.com/statistics/1065466/real-nominal-val...
  - gruez 4y ago
    > Minimum wage should be going up all the time to keep it inline with inflation. That's the point of minimum wage. Except that if you adjusted the minimum wage in 2005 to account for inflation, you'll only get $7.93 today[1]. I doubt the people clamoring for a $20 minimum wage today are doing it on the basis of "keeping up with inflation". [1] https://fred.stlouisfed.org/series/CPIAUCSL https://fred.stlouisfed.org/series/CPIAUCSL

cycomanic 4y ago

Considering that at the same time that inflation has been at the highest in years, corporate profits have been the highest ever. Maybe those two are much more related than wage and inflation?