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03-29-2009, 06:01 PM #1Member
Does raising minimum wage cause inflation?
Originally Posted by JaggedEdge
jonquest Reviewed by jonquest 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
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