Does raising minimum wage cause inflation?

[JaggedEdge]

no, unions are fine. unions can try and get raises, but if they demand wages too high, other workers who are willing to work for less will come in and take their place.

I have to disagree.

Unions cause companies to move out the country. I live around towns with plants, and know several people who work at oil plants. The company in the town by me may be closing down because of the union. I fail to see how that is in the best interest of the company or it's employee's. Instead of continuing to deal with the union they are simply planning to close down the plant.

Also, when they strike the companies don't necessarily let new workers in. The plant by me simply uses a skeleton crew of upper-management and cuts back production drastically, which ultimately causes higher gas prices.

JaggedEdge Reviewed by JaggedEdge on 03-29-2009. Does raising minimum wage cause inflation? We raise minimum wage in order for people to afford to live, but does raising minimum wage actually encourage inflation? I have yet to come up with a definitive answer to this question. When cost of living increases, people need to make more in order to adjust, but at the same time, when the wages goes up, the cost of living tends to go up with it. Do landlords and the like raise prices because the consumer can afford to pay them again. Basically, we seem to increase minimum wages in Rating: 5

[jonquest]

I have to disagree.

Unions cause companies to move out the country. I live around towns with plants, and know several people who work at oil plants. The company in the town by me may be closing down because of the union. I fail to see how that is in the best interest of the company or it's employee's. Instead of continuing to deal with the union they are simply planning to close down the plant.

Also, when they strike the companies don't necessarily let new workers in. The plant by me simply uses a skeleton crew of upper-management and cuts back production drastically, which ultimately causes higher gas prices.

it is better for the company to close down the plant and find people who will take the lower wages in the long run. a real problem today is the standard of living in the united states needs to drastically fall. nobody wants to accept it, but it has to happen, china will stop sending us money eventually. if the company can find cheaper work elsewhere, that is beneficial to both the company and the economy. the unions can try to get higher wages, but isn't going to happen if they are already overpaid. if the company continued to overpay its workers, it would end up like GM and Chrysler. then again, I guess that isn't a bad thing anymore.

[JaggedEdge]

it is better for the company to close down the plant and find people who will take the lower wages in the long run. a real problem today is the standard of living in the united states needs to drastically fall. nobody wants to accept it, but it has to happen, china will stop sending us money eventually. if the company can find cheaper work elsewhere, that is beneficial to both the company and the economy. the unions can try to get higher wages, but isn't going to happen if they are already overpaid. if the company continued to overpay its workers, it would end up like GM and Chrysler. then again, I guess that isn't a bad thing anymore.

They make around $70,000 annually, for working full-time. They make around 125,000-150,000 if they work a lot of overtime. I don't think they really need much more. Those are fair wages. Also, if they simply moved somewhere else in the states I wouldn't argue much, but they are going overseas. Granted, I feel the government is to blame for corporations moving to other nations, but it doesn't change the fact we should try not to run them away. These small towns need these plants.

[jonquest]

They make around $70,000 annually, for working full-time. They make around 125,000-150,000 if they work a lot of overtime. I don't think they really need much more. Those are fair wages. Also, if they simply moved somewhere else in the states I wouldn't argue much, but they are going overseas. Granted, I feel the government is to blame for corporations moving to other nations, but it doesn't change the fact we should try not to run them away. These small towns need these plants.

People will realize they have to take a pay cut once all the jobs start going overseas. I don't have a problem with them taking the job out of the country at all. Especially when their workers are that overpaid. We can't prop up companies who pay their workers too much, that will just lead to other companies around the world having a huge advantage and eventually they would beat out our companies who have to pay more for labor.

[JaggedEdge]

People will realize they have to take a pay cut once all the jobs start going overseas. I don't have a problem with them taking the job out of the country at all. Especially when their workers are that overpaid. We can't prop up companies who pay their workers too much, that will just lead to other companies around the world having a huge advantage and eventually they would beat out our companies who have to pay more for labor.

Doesn't you argument here disagree with unions though? We are already experiencing these problems. Cap and trade will do exactly what you are talking about. We shouldn't try and run companies out of the United States, by doing so, we are shipping job's overseas and harming our own economy. Cheap products do us no good if their aren't enough employed people to purchase them.

I'm not suggesting we should prop them up, I'm simply arguing we shouldn't do things to cripple them to the point where the say, "Fuck this we're moving."

[jonquest]

Doesn't you argument here disagree with unions though? We are already experiencing these problems. Cap and trade will do exactly what you are talking about. We shouldn't try and run companies out of the United States, by doing so, we are shipping job's overseas and harming our own economy. Cheap products do us no good if their aren't enough employed people to purchase them.

I'm not suggesting we should prop them up, I'm simply arguing we shouldn't do things to cripple them to the point where the say, "Fuck this we're moving."

Personally, I am against unions, but we can't stop people from joining together to demand higher wages when the time is necessary. If people want to be arrogant asses and demand higher wages, they will have to pay the price of not having a job.

[JaggedEdge]

Personally, I am against unions, but we can't stop people from joining together to demand higher wages when the time is necessary. If people want to be arrogant asses and demand higher wages, they will have to pay the price of not having a job.

I can't disagree with any of that.

[GoldenBoy812]

Doesn't you argument here disagree with unions though? We are already experiencing these problems. Cap and trade will do exactly what you are talking about. We shouldn't try and run companies out of the United States, by doing so, we are shipping job's overseas and harming our own economy. Cheap products do us no good if their aren't enough employed people to purchase them.

Mass production needs skilled technicians to repair and replace the machines that truly produce. The future is automation, with very few people involved in the production process, with many people involved in the R&D, marketing, transportation, etc....

The phase from 2nd to 3rd phase economies (mass production -> mass information/mass customization) is currently under way.

[JaggedEdge]

Mass production needs skilled technicians to repair and replace the machines that truly produce. The future is automation, with very few people involved in the production process, with many people involved in the R&D, marketing, transportation, etc....

The phase from 2nd to 3rd phase economies (mass production -> mass information/mass customization) is currently under way.

I agree that we are moving to automation, but that process isn't exactly in the near future. Granted, I'm not extremely knowledgeable here, but I would assume it truly began with the printing press. It has been a slow process.

If I really wanted to play devils advocate I could easily argue the transition to automation began around ancient Rome's time. They began phasing out human labor with their cranes and pulley (sp?) systems.

So I agree that things are steadily becoming more automated, and with the technological boom of the last century, it is reasonable to assume the transition will continue at a more rapid pace. I don't think we can exactly put a timeline to it though.

I doubt the ancient world saw the destruction of their technology boom coming... Another Dark Age could be around any corner.

I agree that jobs will still be available though, at least in regards to overseeing the machinery.

[megansoon]

I think so. And raising the minimum wage will be a big help for those who needs extra cash for their basic needs. In break with most retailers, Costco's CEO states he supports President Obama's call to boost the minimum wage. But while the President wishes to raise it to $9 an hour, Costco would let it go even higher, to $10.10 an hour.