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03-29-2009, 09:49 PM #1
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Does raising minimum wage cause inflation?
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.
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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