Economics Lesson

I'm probably wrong, as it's been a while since economics, but wouldn't raising minimum wage just cause inflation? If those people employing min wage persons have to pay more, they aren't going to eat the cost difference. It's going to be passed on to the consumer by means of decreased quantity or increased cost, right? I don't know what the statistics are on what percentage of people get paid what, but a raise in the min wage isn't going to increase the amount I get paid, but it may increase the costs of some of my products or services. And then I'm going to buy less.

Also, for the record: a person who just makes min wage probably doesn't need a two bedroom apartment. If they have kids, there is already assistance out there for food and governmental housing. It isn't ideal, but what is?

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3 comments

  1. I don't know about Min. Wage, but I do know that Standard of Living increases if kept up to date would insure that people are making enough without causing inflation. Usually its a point of a percent to 1% a year. Without those increases the standard of living continues to rise and more and more people fall behind that and under the poverty line. In the long run 1% doesn't seem like much each year but it helps in the long run.

    More than anything saving and spending wisely helps the most.

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    1. Standard of living kind of makes more sense to me. As a municipal employee, I get a percentage raise every year. It actually used to be twice a year - one performance based and the other cost of living. Right now, we just get the cost of living raise.

      It gets to the point that all I can envision is people with wheelbarrows of money, trying to buy a loaf of bread.

      And, you might find this funny: I couldn't find your last couple of comments anywhere on my blog and couldn't figure it out. You got labeled as "spam." :)

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    2. That must mean that I comment a lot! :P

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