US attempts to increase federal minimum wage

[Vendrah]

I think the problem is that you want people to have more money to pay for "stuff", without giving any thought to increasing how much "stuff" there is to around which can be paid for with money.

Adding a zero to the end of everyone's pay cheque, without doing anything else literally does nothing but devalue the currency to 1/10th its original value, and nothing more.

I actually joined this thread questioning your own ideas of "people demanding higher wages are probably a bit dumb, and could be appeased by a bit of inflation" and just stating that in fact, with your reasoning there is a loop that if these people(a) ask for a wage raise then inflation takes the raise and (b) if they don't, then they are going to be even poorer with inflation.

Second, what you said on this post also has an inaccurate assumption. We are not talking about raising the whole population's income. We are talking about raising the income of a poorer sector, specifically the one related to the minimum wage. The inflation logic of "if we double everyone's income, then we double the price of all the stuff" applies if we are talking about everyone's income. And that is simply not the case.

I actually have not stated my own opinion neither that I want anything in specific, so I did not stated that I want "people to have more money to pay for stuff". I didn't said my own opinion about if the minimum wage should be increased or not so far in this thread. When I said "worthless", it is how these people feel sometimes for sure, at least some of them.

 

[Matty]

I actually joined this thread questioning your own ideas of "people demanding higher wages are probably a bit dumb, and could be appeased by a bit of inflation" and just stating that in fact, with your reasoning there is a loop that if these people(a) ask for a wage raise then inflation takes the raise and (b) if they don't, then they are going to be even poorer with inflation.

Second, what you said on this post also has an inaccurate assumption. We are not talking about raising the whole population's income. We are talking about raising the income of a poorer sector, specifically the one related to the minimum wage. The inflation logic of "if we double everyone's income, then we double the price of all the stuff" applies if we are talking about everyone's income. And that is simply not the case.

I actually have not stated my own opinion neither that I want anything in specific, so I did not stated that I want "people to have more money to pay for stuff". I didn't said my own opinion about if the minimum wage should be increased or not so far in this thread. When I said "worthless", it is how these people feel sometimes for sure, at least some of them.

Actually, increasing the minimum wage does basically trigger inflation, because virtually all minimum wages are quickly spent on consumer goods and services. Increasing executive salaries, and lowering company taxes had the opposite effect. Generally, that end of the economy invests extra money into productive investment, which increases the products and services available. When this happens without increases in minimum wages, products and services generally become cheaper, because of higher competition and surplus influences.

 

[Vendrah]

Actually, increasing the minimum wage does basically trigger inflation, because virtually all minimum wages are quickly spent on consumer goods and services. Increasing executive salaries, and lowering company taxes had the opposite effect. Generally, that end of the economy invests extra money into productive investment, which increases the products and services available. When this happens without increases in minimum wages, products and services generally become cheaper, because of higher competition and surplus influences.

As I said earlier, again, but different words: If my own income had increased 100 times today, that doesn't mean that I am going to cause everything around me to inflate the price a 100 times. It could cause a smaller inflation effect. Now, if we raised 100 times the whole population instead of just me, then that probably would cause things to inflate a 100 times. This is basically what I had explained earlier.