theoretically and empirically the answer is yes for the most part....while the money supply itself still plays a large role in inflation as well as what people do with the extra money when they get it...there is some evidence that saving it as opposed to spending it could hedge inflation...i wish i still had my old labor econ book with the graphs to prove it, perhaps ill go look it up tomorrow

and while i dont know if you could reverse it exactly, you could certainly put downward pressure on inflation by lowering the minimum wage

thats the thing, i know you are a fan of the free markets and the minimum wage if actually a market inefficiency because theoretically there are people that would be willing to work for a lower wage but the law doesnt permit it, and therefore the firm loses out

the thing ive noticed throughout my study of economics is that REAL growth (real as in actual growth without inflation) is very hard to define and determine what the many factors are
Stemis516 Reviewed by Stemis516 on . 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