Show of HandsShow of Hands

polster2 August 11th, 2016 3:42pm

Liberals often make the argument that inflation will not result from a radical increase in the minimum wage to $15/hour because economics is not a zero-sum game, meaning we can grow the economic pie as opposed to merely dividing it. Is this right?

5 Liked

Comments: Add Comment

OhTheIrony Learning from you
08/12/16 8:02 am

Raising the minimum wage to an excessively high rate would exert inflationary pressure on the economy, but increasing it to keep pace with inflation would only have a minimal effect.

$15 an hour is much too high on a federal level.

Minimum wage increases need to be set at the municipal level to minimize deadweight loss and to keep the cost of living low.

DoctorWasdarb Marxist Leninist Maoist
08/11/16 2:31 pm

I agree with the action, but not the reasoning. There are a finite number of resources on the planet (or in the universe), so we can only split the pie. But I don't think it would create massive inflation.

Reply
DeusOrbus Stay Positive
08/11/16 2:11 pm

The inflation is marginal compared to the increase in living conditions.

Reply
DeusOrbus Stay Positive
08/11/16 2:12 pm

Also the minimum wage wouldn't jump from $10-15 it would be increased gradually.

chinito Florida
08/11/16 12:25 pm

I agree that the economy is not a zero sum game but raising the minimum wage doesn't automatically grows the economy. Instead it puts a burden on business owners (specially small businesses) than can result on forcing them to raise prices (inflation) or firing them (and that would shrink the economy).

Reply
ozzy
08/11/16 11:33 am

No.
MW increases cause artificial inflation instantly

Also. It should be a state issue

Reply