Each time the minimum wage has been raised inflation has not been affected. In fact, a flat raise to minimum wage will bring prices down in the long run. It is just simple economics. See, half the reason the economy has been growing slowly is because so much of the nations wealth is held at the top, and traditionally the rich do not spend their money. They put it in the bank or send it offshores taking it out of the economy, thus weakening it. With all the wealth at the top, it really has no natural way to work itself down because frankly reaganomics is a crock of shit and the idea that it will trickle down is a lie. With all the money at the top this keeps it out of the hands of the poor, who are actually the big spenders in the economy. When the poor have no money they obviously cannot buy. With the demand for goods down prices will be raised to try and maintain profit margins. But this again just weakens the economy. However, when those at the bottom are paid a livable wage they have that buying power that causes a higher demand. Goods start being bought, and not just primary goods, but all types of goods. This raised demand drives prices down as companies try to sell more and more product. This increased demand also calls for more workers to both manufacturer and sell these goods, lowering unemployment. With more people with money it again pushes up demand and the cycle continues. That is how a healthy economy operates, and how it has operated during every time of economic prosperity in our past.
Posted on: Thu, 31 Jul 2014 14:15:16 +0000
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