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[Cyan~Fire]

[Dr Brain]

How does that make any sense at all? Inflation is a decline in the purchacing power of money. Increasing the minimum wage will only add to inflation.
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Hyperspace Owner

Smong> so long as 99% deaths feel lame it will always be hyperspace to me

[Cyan~Fire]

How does that make any sense at all? I wasn't saying increase the minimum wage and thus create inflation, I was saying increase the minimum wage to keep up with inflation. If most jobs are paying more, then the minimum wage should be increased.

[Dr Brain]

That's not keeping up with it. That's creating it.

[Quan Chi2]

Hes got you there.

[(Deactived B l a h e r)]

Finally some one that's not too stubborn for their own self's, and understands something.
Ever hear of the term "if something is working fine, don't change it.", well we never needed to raise the wage in the first place, and due to the problems that it cause, people kept raising it higher and higher, which one day we will end up like that country in Africa (I forget what one it was), and it takes $2,000 (I forget what the true currency it was) to buy a loaf of bread.

[Solo Ace]

[Cyan~Fire]

[Animate Dreams]

I can see how raising minimum wage may cause some inflation... but most people that are against minimum wage increases have never worked minimum wage jobs. We need a minimum wage, and as the value of a dollar changes, minimum wage will need to change with it. Unless you'd like to turn into Mexico?

[Dr Brain]

[Cyan~Fire]

Everything you said above is assuming inflation doesn't happen independently of a minimum wage increase. For example,

[Dr Brain]

Minimum wages change all at once. Not gradually over time.

And why would their salaries go up?

[Cyan~Fire]

[(Deactived B l a h e r)]

[Dr Brain]

[K']

[Dr Brain]

You seem to have missed the part in parens, Grav, where I said that some people do.

[Cyan~Fire]

[Doc Flabby]

wage increases do not necessery mean that inflation will increase.

Inflation can only increase if people spend an amount to increase demand greater than supply can keep up. If there is excess supply in the market wage increases will not increase inflation. inflation around the 1-3% level is seen as normal and healthy for the economy.

Wages increasing is not necessery a bad thing.

Wages being increased to keep up with inflation does no lead to more inflation. It keeps inflation the same, as the amount the person earning the money has the same spending power. If wages are not increased to keep up with inflation people lose spending power as everything starts to cost more. So they spend less. As people spend less companies go bust. People lose jobs. If this continuues for too long you end up with a recession.....
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[SamHughes]

You gotta love the oversimplistic views of how the economy works that are given in this thread. Here's the next question to divide you people: Does the progressive income tax have a long term effect on disposable income levels?

[K']

[Cyan~Fire]

[Dr Brain]

I fail to see how your scenerio works. It looks to me like B gets a promotion, then the government mandates that A should get one too, disregarding the fact that the company would raise A's wages if he/she were worth it.

That's increasing inflation, not keeping up with it.

[Muskrat]

[Dr Brain]

No, more often, A leaves and finds someone that will pay more. Cyan, however, had B's pay rate raised in his example, so I was merely following along.