RE: 'Boosting the economy from the bottom up': Why minimum wage hikes are a good thing 'If you boost minimum wages you are boosting the economy from the bottom up,' economist argues

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'Boosting the economy from the bottom up': Why minimum wage hikes are a good thing 'If you boost minimum wages you are boosting the economy from the bottom up,' economist argues

in money •  8 years ago 

My evidence is the very well documented effect that inflation has on the economy. Just look up wage push inflation and be amazed.

http://www.investopedia.com/terms/w/wage-push-inflation.asp

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Going back to your original stance. Inflation is not the only result of increasing minimum wage. You are choosing to have tunnel vision for some reason. You are just flat out ignoring the benefits.

I struggle to see what the benefits are. With more money floating around sure in the short term it helps parts of the economy but it causes a scarcity in the supply of goods due to more purchases happening. This causes an increase in the cost of goods (due to being rarer or their reagents being rarer) and now we are back where we started. Higher wages but with the same purchasing power as before.

The benefit is overall growth for the economy which results in increased prosperity, improved quality of life and a decrease income disparity.