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Not true about the pie not growing. The pie did grow, so it’s a benefit to society. It just didn’t grow enough that giving the employees a larger slice didn’t
by mint2 2y ago
Not true about the pie not growing.
The pie did grow, so it’s a benefit to society. It just didn’t grow enough that giving the employees a larger slice didn’t slightly shrink the owner’s pie. However, The owners pie shrunk less than it would have had the pie not grown due to increased efficiency.
I wonder how these studies captures the way the workers have more money that immediately flows back into the economy, benefiting everyone.
- sbuttgereit 2y ago> I wonder how these studies captures the way the workers have more money that immediately flows back into the economy, benefiting everyone. I think you left out the part about, "and at what point that creates inflationary pressure."
- f1shy 2y agoMinimum wage does not increase inflation in any measurable amount. Has been demonstrated over and over in praxis.
- mint2 2y agodeflation is good? Is wage the only cause of inflation we care about? Guess so.
- bb88 2y agoHigher wages should create more demand, and that should create pressure to raise prices. On the other hand, if people were going into debt with high interest credit cards, then it's very possible that demand doesn't actually change. Instead credit card debt gets paid off, or surplus income is banked as savings.