Is increase in minimum wage a good method to fight inflation? - page 2.

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Quote from: Spaceman1000$ on February 13, 2024, 07:41:40 AM

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Have you ever heard that the solution was to increase wages for employees in all countries around the world? agree because, in my research, I have never heard of anything like that, to be honest. Because if that method were effective, all the countries around the world would have done that for sure as a solution.

That's why, in reality, it's not easy or that easy for a company, especially for private companies. If they do that, for sure, there will be others who can close down. Instead of helping to provide jobs, there will be many more people who will lose their jobs. work. Therefore, that will not be an effective solution for inflation.

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Quote from: Oasisman on February 18, 2024, 09:32:42 PM

Quote from: Spaceman1000$ on February 13, 2024, 07:41:40 AM

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

No definitely not, but it would also help people to catch up with the constant increase in price of goods and necessities in the market. However, these may have consequences that would cause the prices in the market to increase further more after learning the wages have increased, as the merchants, business owners, and companies might put a price increase with their products to supplement the increase of wage/salary to their employees.
Fighting inflation is mostly with the governments side of job that involves the central bank. It is their job to avoid these rapid inflation, not with the people or with business owners.

Let’s just accept that inflation is here to stay. And even if that is a job of the government to beat this inflation, it’s undeniable that we are the ones suffering the most. So asking for a minimum wage increase can help a lot to ease our sufferings financially and emotionally. That’s the least a government can do to help us even if we all know that inflation will stay for good probably.

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Quote from: Miles2006 on February 20, 2024, 10:49:40 AM

Increase in minimum wage can help in some certain extend but can't fight against inflation fully, when the price of goods keeps increasing weekly due to poor economy structure workers still can't cope even with an increase in wages.

Yes, it can help but that's the end of the help that you can get from the government and with your employer. After having an increase, that's all going to be your own battle and you need to fight against it on your methods that you know. Looking for side hustles and other ways to increase your income will help you deal with inflation. That's what will set as the reality that you have to come together along with the inflation and also with your expenses so as your cash flow.

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Quote from: Oshosondy on February 13, 2024, 07:48:11 AM

Increase in minimum wage can be used to ease the pressure of inflation that increase in price of goods and services have on government workers. If the minimum wage has been increased, this will help the government workers to be able to be able to have more money to pay for goods and services after there have been rise in the cost of goods and services. But this is not the way to fight inflation, it is just a way to reduce the effect of inflation on government workers.

An increase in minimum wage doesn't favor government workers that much in the long run. Inflation is simply the skyrocketing of prices in an economy.
One thing that causes inflation is "too much money" in the economy. When too much money is chasing few goods, the prices of those goods go up.
Now, let's imagine the government increases the minimum wage of the country, that means the purchasing power of the people has increased, which means demand for goods and services will increase and we all know that "the higher the demand of a commodity, the higher the price of that commodity". So that means inflation will just increase, thereby defeating the purpose of increasing the minimum wage. And the higher the inflation rate, the more the currency loses value. In no distant time, the value of the previous minimum wage would be the same as the value of the new.

The government should look for the factors that are causing inflation in the country and tackle those factors. Increasing the minimum wage without fighting the reason for the inflation is a waste of time.
Increasing the minimum wage is just a thing a bad government does to keep its party in power. They use that to buy the hearts of the masses when in reality, they've done nothing.

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Quote from: Spaceman1000$ on February 13, 2024, 07:41:40 AM

Is increase in minimum wage a good method to fight inflation?

As far as I know, the minimum wage only has an effect on their respective personal economies in boosting financial/individual economic income. My understanding is that the minimum wage is not a method to fight inflation, because these two factors have two conflicting methods.

The fact that the minimum wage received by individuals is no guarantee to stabilize the inflation that occurs, they still cannot fight inflation, I think the minimum wage has nothing to do with the influence on inflation.

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Increase in minimum wage can help in some certain extend but can't fight against inflation fully, when the price of goods keeps increasing weekly due to poor economy structure workers still can't cope even with an increase in wages. The best here is to tackle the problem and find a way to handle such problem cause if price of goods keeps increasing it will definitely affect everyone and it takes time for the price to fall back rather the price keeps increasing and not just workers but traders will face same challenges.

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Quote from: boty on February 20, 2024, 09:08:35 AM

Quote from: Adreman23 on February 20, 2024, 03:17:33 AM

My opinion is that increasing the minimum wage for workers to combat inflation depends on where the government will get the budget for it. If they create new money just to cover the budget for the minimum wage increase, it will worsen inflation. This is because injecting more money into circulation will lead to further increases in the prices of goods and services. However, if the budget is obtained from elsewhere, such as through taxing large companies, it would help stabilize inflation because the government isn't creating new money, thereby maintaining a stable supply and demand for money. Additionally, this would support workers in meeting their needs, motivating them to contribute to a more prosperous economy. Nevertheless, the government must balance this carefully to avoid potential losses for investors.

That's right, by creating more new money this will certainly make inflation worse and it will be more difficult for people to meet their needs because prices are unstable and for those who don't have a fixed income it will be even more difficult to meet their needs, if taxes are increased. against companies and governments not choosing to create new money would certainly be better because this can help economic growth and also people must have skills that they can sell to cover their needs when inflation occurs.

Government aware of that and we do know on whats the cons of printing out more money which it would really be having that huge inflation and we've seen on what happened on Venezuela.
Speaking about personal approach on fighting inflation then it would really be only way of having more source of income on which you could really be able to make yourself that at least be able to sustain
or simply having that counteract on such situation. If you are on minimum wage then it would be best that you should find up another source of income too which would be adding up into your
current income on which you wont really be that making yourself wary about having those inflation problems. Only to those who dont have plans will really be that suffering and could be able to felt out
those inflation effects.

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Quote from: Adreman23 on February 20, 2024, 03:17:33 AM

My opinion is that increasing the minimum wage for workers to combat inflation depends on where the government will get the budget for it. If they create new money just to cover the budget for the minimum wage increase, it will worsen inflation. This is because injecting more money into circulation will lead to further increases in the prices of goods and services. However, if the budget is obtained from elsewhere, such as through taxing large companies, it would help stabilize inflation because the government isn't creating new money, thereby maintaining a stable supply and demand for money. Additionally, this would support workers in meeting their needs, motivating them to contribute to a more prosperous economy. Nevertheless, the government must balance this carefully to avoid potential losses for investors.

That's right, by creating more new money this will certainly make inflation worse and it will be more difficult for people to meet their needs because prices are unstable and for those who don't have a fixed income it will be even more difficult to meet their needs, if taxes are increased. against companies and governments not choosing to create new money would certainly be better because this can help economic growth and also people must have skills that they can sell to cover their needs when inflation occurs.

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My opinion is that increasing the minimum wage for workers to combat inflation depends on where the government will get the budget for it. If they create new money just to cover the budget for the minimum wage increase, it will worsen inflation. This is because injecting more money into circulation will lead to further increases in the prices of goods and services. However, if the budget is obtained from elsewhere, such as through taxing large companies, it would help stabilize inflation because the government isn't creating new money, thereby maintaining a stable supply and demand for money. Additionally, this would support workers in meeting their needs, motivating them to contribute to a more prosperous economy. Nevertheless, the government must balance this carefully to avoid potential losses for investors.

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Quote from: spectre71 on February 19, 2024, 11:25:46 AM

Quote from: Spaceman1000$ on February 19, 2024, 11:15:44 AM

However, hence the inflation is high, it eats deep into the purchasing powers of the citizens, that is why some persons are arguing that, increase in the minimum wage on the side of government will help to balance the purchasing powers of the citizens and it wouldn't be a bad idea because their purchasing powers are weak. It doesn't stop the government to fight the root cause of inflation, but the situation whereby citizens cannot easily afford things they basically used to as a result of inflation then the idea of increasing their pay becomes reasonable.

This will never work, ever. Say you own a business and min wage goes up. Where does that extra money come from? You have to increase prices of your products accordingly. Additionally you cut the weak employees and increase the load accordingly on the now higher paid ones. As an employer at this time, break's are going to be precise and no phone time at all.

The best way to fight inflation? Don't elect morons like Biden who print money ad nauseum

there's no need to debate, all countries have the potential to be affected by inflation and the figure of a leader plays an important role in getting their country out of the possibility of inflation occurring, the us is a strong country but they have a president who doesn't know how to work lol. currently, there is a lot of unemployment and i continue to monitor that there are many large companies that are laying off their employees, this is what should be avoided, if you increase the minimum wage then entrepreneurs will suffer, they are encouraged to fire and make their employees more efficient, raising the minimum wage is really a bad decision hard, it will never work.

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Quote from: Spaceman1000$ on February 13, 2024, 07:41:40 AM

Over time, I've heard discussions about inflation and the rising cost of goods and services across almost every sector on the world economy.
However, suggestions have been made in various ways on how best to tackle the menace called Inflation. Recently I have personally thought that one of the ways to fight inflation in an economy is to increase minimum wage. More so there has been a back and forth argument on these, as some persons argue that the increase in minimum wage will rise the bar on commodities, because they feel hence you increase the purchasing powers, it will have a multiplier effect on the economy which might be challenging.

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

Inflation is a symptom for several things, but it's not necessarily a bad thing, as inflation at reasonable rate is to be expected as it's build into core of our financial system.
Prices have been rising since the start of fiat money, and every fiat money out there is build to have reasonable inflation. You can't or shouldn't really combat that, but you can combat inflation that's got out of control, because that can lead to hyper inflation.

And there will be times when inflationary rates need to be exceptionally high, that's normal in times of crisis, as you can think of it like a fever that needs to be high enough to kill a flu virus, but not the host.
That isn't a perfect analogy for it, but closest i can think of. Inflation is used stimulate the economy, like raising minimum wage as well. Economy is not doing well when people keep hoarding and holding, no matter what hodl meme tells you.

If you haven't already, i suggest you'll read about different kinds of economic systems, like keynesian, austrian, and monetarism. You don't have to invent a wheel again as there are lots of people out there who have already studied this subject.

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Quote from: invo on February 18, 2024, 07:03:56 PM

That's correct. In the long run, employers will lose their purchasing power due to inflation. If their salary is not adjusted to match the inflation rate, they will remain stagnant without any improvement unless they find an additional source of income, which may not be a viable option for many employees. However, during this scenario, they will have no other choice.

In inflationary conditions or scenarios, we are really forced to look for additional sources of income if employees do not receive a salary increase adjusted to inflation conditions by their bosses. Because people who still want to work with their usual salary will certainly not be able to survive if inflation conditions continue for a long period of time, so their choice will continue to be looking for other sources of income, even though they feel very forced and difficult.

And if entrepreneurs lose their purchasing power due to inflation, it will also have an effect on the condition of companies that provide goods or products that previously were often purchased by entrepreneurs. So that difficult conditions will also be felt by the company and can result in a reduction in employees along with a reduction in their production capacity due to such conditions. Finally, employees who have lost their jobs have to think about getting another job in order to continue earning income in difficult conditions.

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Quote from: Lida93 on February 13, 2024, 07:43:39 AM

Increasing the minimum wage of workers doesn't solve the inflation problem it's just a surface amelioration but deep down it multiplies the inflation effect when the actual economic issues that leads to inflation hasn't be tackled yet.

....

that's right, increasing the minimum wage will not solve the problem because it will have an impact on other things which will make the problem more complex and it will cause inflation to continue and even get worse. what should be done in this case is to make targeted policies to citizens, for example subsidies for basic commodities and supply chains, increasing interest rates, and several other policies that the government can take. because only with well-targeted policies can the problem of inflation be overcome.

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Quote from: Spaceman1000$ on February 19, 2024, 11:15:44 AM

Quote from: STT on February 18, 2024, 07:16:23 PM

Unfortunately its not an easy solution that works. Cost of labor is a cost in the economy like anything else. Workers can be paid more but also efficiency must increase in order to combat inflation. If people are literally dying off because they arent being paid fairly its an arguable situation to a lesser extent but I dont think its safe to overly pursue a policy of minimum wages as a solution to failures elsewhere. Its the emergency backup or safeguard rather then the actual fix to inflation and other failings.

However, hence the inflation is high, it eats deep into the purchasing powers of the citizens, that is why some persons are arguing that, increase in the minimum wage on the side of government will help to balance the purchasing powers of the citizens and it wouldn't be a bad idea because their purchasing powers are weak. It doesn't stop the government to fight the root cause of inflation, but the situation whereby citizens cannot easily afford things they basically used to as a result of inflation then the idea of increasing their pay becomes reasonable.

This will never work, ever. Say you own a business and min wage goes up. Where does that extra money come from? You have to increase prices of your products accordingly. Additionally you cut the weak employees and increase the load accordingly on the now higher paid ones. As an employer at this time, break's are going to be precise and no phone time at all.

The best way to fight inflation? Don't elect morons like Biden who print money ad nauseum

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Quote from: STT on February 18, 2024, 07:16:23 PM

Unfortunately its not an easy solution that works. Cost of labor is a cost in the economy like anything else. Workers can be paid more but also efficiency must increase in order to combat inflation. If people are literally dying off because they arent being paid fairly its an arguable situation to a lesser extent but I dont think its safe to overly pursue a policy of minimum wages as a solution to failures elsewhere. Its the emergency backup or safeguard rather then the actual fix to inflation and other failings.

However, hence the inflation is high, it eats deep into the purchasing powers of the citizens, that is why some persons are arguing that, increase in the minimum wage on the side of government will help to balance the purchasing powers of the citizens and it wouldn't be a bad idea because their purchasing powers are weak. It doesn't stop the government to fight the root cause of inflation, but the situation whereby citizens cannot easily afford things they basically used to as a result of inflation then the idea of increasing their pay becomes reasonable.

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Quote from: Oasisman on February 18, 2024, 09:32:42 PM

Quote from: Spaceman1000$ on February 13, 2024, 07:41:40 AM

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

No definitely not, but it would also help people to catch up with the constant increase in price of goods and necessities in the market. However, these may have consequences that would cause the prices in the market to increase further more after learning the wages have increased, as the merchants, business owners, and companies might put a price increase with their products to supplement the increase of wage/salary to their employees.
Fighting inflation is mostly with the governments side of job that involves the central bank. It is their job to avoid these rapid inflation, not with the people or with business owners.

What happens in our society is that employees always demand salary increases on the grounds that necessities are becoming more expensive. There is indeed a return if employees comply with their wishes, of course product prices are getting higher, as if they are rolling like waves, which will actually increase the inflation that occurs. I think the government has done various things to suppress it, but this is only suppressing it, not stopping the rate of inflation

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Raising the minimum wage is good but may not be a good way to deal with inflation. Raising and lowering inflation is in the hands of the government leaders intervene nothing in the hands of the people. Businessmen raise and lower the prices of their products depending on this inflation. Due to high inflation people have cut back on many essential expenses. Although there is a risk of increasing the inflation rate there is no alternative to increase the purchasing power of the people. Many countries have raised the minimum wage to counter economic slowdowns caused by high inflation.

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Quote from: Spaceman1000$ on February 13, 2024, 07:41:40 AM

So guys, is increase in minimum wage not a good measure to fight inflation. Let's have your opinion.

No definitely not, but it would also help people to catch up with the constant increase in price of goods and necessities in the market. However, these may have consequences that would cause the prices in the market to increase further more after learning the wages have increased, as the merchants, business owners, and companies might put a price increase with their products to supplement the increase of wage/salary to their employees.
Fighting inflation is mostly with the governments side of job that involves the central bank. It is their job to avoid these rapid inflation, not with the people or with business owners.

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Quote from: shield132 on February 18, 2024, 05:44:15 PM

When there is inflation, an increase in the minimum wage is necessary to ease the pain of inflation on people. Btw the inflation rate that the government sets is not a good indicator because sometimes they say that inflation is 10% but actually in real life, product and service prices go up by more than 20%. Since many companies pay a minimum official wage to their employees, it's good if governments increase the minimum wage because an increase can help millions of people overcome financial difficulties. For example, while inflation is 20%, 10% increase in minimum wage can make it look like inflation is 10%.

Increase in minimum wage may still not be enough to fight inflation but it could lessen the financial struggles of the employees knowing their purchasing budget has increased a little despite of the increasing prices of basic commodities. Although it cannot totally beat inflation but I think it can still be a lot helpful to those employees who are working hard just to sustain their daily needs.

The government is actually responsible to manage the country's inflation but seeing this current inflation will stay for good, I guess the government can no longer beat this inflation. The best they can do is to increase the minimum wage so that the citizens will lessen the financial pressures as well.

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Quote from: STT on February 18, 2024, 07:16:23 PM

Unfortunately its not an easy solution that works. Cost of labor is a cost in the economy like anything else. Workers can be paid more but also efficiency must increase in order to combat inflation. If people are literally dying off because they arent being paid fairly its an arguable situation to a lesser extent but I dont think its safe to overly pursue a policy of minimum wages as a solution to failures elsewhere. Its the emergency backup or safeguard rather then the actual fix to inflation and other failings.

strengthening the currency might be better idea, just try to make the economy more alive through incentives for business even though it seems like government trying to give money to business, but realistically speaking its those business that keep the economy alive, just incentivize with stricter policy that they won't misuse the money instead its to grow the business that might be viable, increasing wage will just become a temporary solution where at no time the purchasing power would plummet again because as we know it if the minimum wage increase price of commodity and food will also increase later on.
so its not truly a good solution, I think the best solution would be incentivizing to keep the economy alive also try to strengthen that currency.

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