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It's not just minimum wages. If productive sector employees' demand for goods causes inflation, prices will rise. If you want to keep your nurses/doormen/teache
by Tarq0n 4mo ago
It's not just minimum wages. If productive sector employees' demand for goods causes inflation, prices will rise. If you want to keep your nurses/doormen/teachers you'll have to increase their wages regardless of what the minimum wage is.
- philipallstar 4mo ago> If productive sector employees' demand for goods causes inflation, prices will rise. I'm not sure what you mean. Prices rising is what we call 'inflation' - one doesn't cause the other. They're the same thing.
- Tarq0n 4mo agoRising demand induces inflation because more money is chasing the same goods.
- philipallstar 4mo agoThat might just mean more competition is created as there's a bigger market to chase. Minimum wage has the same risk as the one you mentioned, but also all but guarantees higher prices (particularly on labour-intensive goods such as food) as everyone's wage needs to go up to make the harder/worse jobs worth doing.