So, I think min wage should be set where a household income on a single earner can provide a livable means. That means, the income should be able to cover food, water, electricity, shelter, internet, health insurance, transportation, a good education, and pretty much the other required
necessities of modern society entirely with a tiny bit to spare to
save.
yep if 'living wage' was $10 and minimum wage went from $10 to say $20. all that will happen is price of goods and services will increase by 2x also.
By your magical logic, if $10 min wage stays $10, then all goods and services also stay the same price?
Because that's not reality buddy -- considering the federal min wage hasn't gone up in a decade+
Macroeconomics is a rather complex topic to start with, once you start to pull in international geopolitical measures with fiat market manipulation it gets even more complex quickly.
i never said if wages stagnate inflation equally stagnates.. you said that
but the magical logic is the governments GDP has risen due to more money in circulation due to the mortgages creating money meaning while people are not using their income. and instead getting credit cards and mortgages to buy things.. companies see this as the hidden 'disposable' money increases. and so they increase their fee's/charges. even if true salary income has not increased..
..so yes if no salaries increased. the inflation still would increase as just explained..
..but if you then 2x salaries the inflation would also 2x ontop of the GDP based inflation from credit/debt currency flows
.. basically no escaping or outrunning the inflation game
the other complexes are that in play is that minimum wage is not the same as living wage.
and not the same as minimal social security benefits
the power that be actually do budget calculation.
for instance they look at the cheapest utility companies. and set that as the expenditure for social security benefits. they take the median 5 utility companies and average their charges and set that as the mini wage budget. they then take all the utility companies and average that for the living wage budget.
3 different budgets
survival budget (social security) productive budget(min wage) and the content/comfort budget(living wage)
same with food budget. they look at the cheapest ownbrand baked beans, bread, pasta. and work out the basic nutrition cost for social security budget.
they take the median 5 brand produce and set a budget for min wage. and then take al the brands and work out a budget for living wage.
what makes this complex. is to tweak the inflation to seem less apparent is that they subsidise big grocery retailers to offer certain produce extra low. just so that they dont have to tweak the national budgets of social security/minimum wage
yep its why you see certain food basics like own brand baked beans seem to be sold too cheap.
its why some utility companies charge $0.12/kw while they try to push one utility company to offer 0.05/kw for people on low income schemes
(yep if they know low income scheme people can access electric at 5c/kw(same as national average years ago) they dont have to increase social security budget to new national average of 12c/kw)
same goes for the as said grocery. it doesnt matter that the bread nd beans are tasteless. as long as grocery stores provide dirt cheap food thats been subsidised. the government then doesnt have to increase social security budgets
so not only is the game of removing cheap cars out of circulation. but also making the food 'essentials/basics' dirt cheap.
ud be surprised when you start to see which items are on governments 'basic basket' shopping list used for calculations. and then look at how unsurprisingly the markets for them specific items dont move the same way other produce does
.. in short it should be no surprise that own brand baked beans has not moved by 2% a year while everything else has moved by more than 2%.
good research reveals cheese was on the government 'basic basket' shopping list. which is why when importing proper cheddar cheese increased in cost. the government started supplying 'american cheese' cheap.
things like basic chicken (water injected to add weight) seems dirt cheap. all to keep the inflation hidden to not require increasing minimal budgets