Topic: Is increase in minimum wage a good method to fight inflation? - page 2. (Read 2004 times)

quote]When people talk about government increasing the country's minimum wages as means to curb inflation they often neglect the private sector not putting them into consideration how they can meet up with affording to pay in the new increment to their employees. They are also faced with the inflation in the country which is affecting businesses negatively. Those in the  private sector suffers mostly in a weak economy even as they still have to pay their taxes and royalties to the government. If Government knowing the right actions to take to address the failing economic conditions of the country only gives the notion that those in government might be benefiting from the inflation on the country and don't want it to end anytime.

Certainly yes. No one has anticipated that we will be struggling with real inflation these days. And I guess the only left option is to increase our minimum wage or increase our sources of income. That way, since there are no chances to beat with this inflation, but at least we won't be highly struggling in sustaining all our basic needs especially that we really need to buy them for our own survival. Increasing our minimum wage is the best option, most particularly for those who only rely on their job for their survival.

Increasing the minimum wage is more of a band-aid solution than a cure. While it provides a temporary move, it does not address the underlying issues. You can't just throw money at inflation and expect it to go awa

Although it is simple, blaming the government is lazy thinking. They do not possess perfect power. Globally, import costs, these are complicated issues. It's like blaming the referee for a poor game; occasionally, the ball bounces just the way it should

Individual finance? That is where the rubber runs across the ground. Although first they seem great, inflation consumes it faster than you could say "cost of living". It's a treadmill, and we're all running on it

We have to consider larger picture. This relates to human behavior as much as economics. It's about realizing how markets respond and how worldwide trade shapes us. It's time to run the figures and replicate the long-term effects of our decisions. It's time to stop responding and begin to plan

Inflation directly affects the prices of goods and we are the consumers of goods, so we are the ones who are affected the most. So it is naive to say that no one knows about inflation. But with limited knowledge, many people find no solution to deal with inflation other than working more and saving more.

My parents also know about inflation and they say that money is losing value but when I asked them what to do they said to try to save more. I don't blame them because I understand that they sacrificed their whole lives to raise me and their lack of financial and economic understanding is understandable.

Among the many solutions to control inflation proposed by the Government, increasing wages is one of them and in my opinion, this solution will have an impact but is only a temporary solution, not the most effective solution. But after all, we have no solution that can completely control inflation, the government is just trying to slow inflation down to the lowest level possible. That means the inflation time bomb will explode one day and the economy will be reset from scratch.

Increase in minimum wage is not a good method of fighting inflation in the society rather it does the reverse by increasing the inflation rate by 5%,let me explain this.

Before now the rate of things are extremely high and the tendency of people purchasing things is 50% except for the ones that are highly well to do and yet the wage of a  worker is still at the normal rate,some can afford what they want while some can't so trying to increase the minimum wage for them will not make everyone happy and at balance,rather with the fat that it's been increased the price of goods and services will increase tremendously as well making it more difficult and fustrating like it shouldn't have.

Of course, raising the minimum wage is not the solution to stopping inflation. But raising the minimum wage could make people feel less pressure in their lives if the government can stabilize prices and prevent them from rising too quickly.

In my opinion, increasing wages is like a double-edged sword. It may be effective in the short term, but in the long term, there will be risks and things will get worse if the government does not find out the cause of inflation and does not fix it. But we need to know that solving inflation is not easy, especially with imported goods because we will depend on other countries. So we should not completely blame the government when they cannot stabilize the prices of goods and instead they have no choice but to increase wages.

I think that raising wages won't help much in the fight against inflation. I recently heard the term "smart money" and I liked it, its meaning is how the population spends its money. Sending it abroad to buy an iPhone or investing it in investments or business in your country?
It's a big difference and I think you agree with me. It's a shame that the state doesn't care about the economic education of the population. It's simply not profitable for the state.

Increasing minimum wage for workers is a good way for the government to improve the living conditions of their workers so that their purchasing power can increase. But if the increase of minimum wage for workers is solely based on inflation in their country, then it will not be a lasting solution but a mere palliative on a temporary basis. The effect of increase in the minimum wage of workers because of high cost of living in the country will eventually make the cost of living to become higher because the prices of goods and services will automatically increase, business people who are also facing hardship will want to leverage on the workers salary increase and increase their prices. To solve the problem of inflation in any country, the government needs to focus on the root causes of the inflation, without tackling it, salary increase will just be circulating more money in the macroeconomics of the country without any tangible solution to the problem.

The government of my country recently increased the minimum wage of workers in the country because of the rising cost of commodities in the market but it didn't cushion the effect of inflation. The root causes of inflation in the country is due to our over reliance on foreign goods, the country imports more than it exports, therefore our fiat keeps losing value. Unless they tackle the root cause of the fiat devaluation, adding money to workers salary will not help them.

If the economy is still struggling, raising the minimum wage may not make a big difference. Government workers will still spend the same amount of their salary on basic needs like food, maintenance, and other essential expenses, despite the increase. A weak economy won't benefit much from a higher minimum wage. In this scenario, the government should focus on fixing the failing sectors and re-evaluating their approach. Many governments in countries with poor economies know how to address the major issues but often ignore them, leaving the people to suffer the consequences of their inaction.

Most citizens know about inflation, in fact is not only the professional economist from the government that knows about inflation. Inflation is felt by every citizen, because it reduces the purchasing powers of the citizens and that will cause a multiplier effect on the economic safety of any country, professional will only give empirical analysis of of the numbers, which can be studied by anybody hence data's are released. There are lots of strategies to use when measuring inflation, so it's not only when we see rising in food prices that we know that there is inflation, although that is a major determinant but not the only measure, as devaluation on countries currency can lead to inflation.

If you are an individual who isnt really that knowledgeable into those things which are economic-related then it would really be just that right or something sensible to be done that you shouldnt really be
that making yourself be left being uninformed or something that missed out those important information in correlated to it. If you arent that knowing on what inflation is, then researching it up would really be
that recommended thing to be done so that it would really be broaden up your knowledge and it would really be helping you out to be wary at least on the things that you would really be that doing into.
Inflation do hits hard into places on which we know that it is always included up on the list into those countries which does have that inflation rate and its getting worst year by year.

So for personal point of view then it would really be that understandable that you would really be needing to act fast for you to be able at least make yourself having that kind of steps taking
to fight such struggle via having another some income source then it would really be that understandable that you should really be mindful about such thing.
We do know that not all would really be mindful about into their condition and would really be that remain contented on the current struggles that they are into and not
really making some steps that making themselves to be on a better condition.

The thing is that nobody knows the real inflation. It turns out that only professional economists from the government know it, but they can easily lie to us that inflation is lower than the actual one. And this is terrible, because only by the difference in food prices can we guess about the real inflation in the country where we live.

Country needs a balance it is not that simple to just increase the minimum wage,even if how many times the minimum wages increase inflation is still there it is still the very big problem, wage increase can help but not a big help not a a solution for me ,the solution is unknown but we also need to have a discipline on proper budgeting of money.

Raising the minimum wage for each worker can indeed have a good impact on efforts to combat inflation because it can also pave the way for increasing people's purchasing power because they all have an income that is balanced with the amount of needs they have to spend every day. However, the industry must also maintain the prices of their own production goods so that they do not increase frequently because this can also cause a decrease in purchasing power in the community.

In addition, the government itself must also be able to control food prices so that the impact of inflation can be overcome so well because if the government does nothing, it will be very difficult to overcome it. And from the several points that you said, it is actually quite good so I also quite agree with it because most taxes in various sectors will also have an impact on the level of difficulty of the community so that it makes the community feel discouraged to continue paying it every year.

But commodity prices depend on import and export, we will have to depend on other countries because no country can be self-sufficient in all goods. Therefore, price stabilization is not as easy as we think and that is the reason why many governments have difficulty controlling prices. Raising the minimum wage is seen as an alternative to lowering the prices of items because it is beyond their control.
Such as fuel products, The Arab Emirates and Russia are the main fuel exporters in the world and if they are determined not to sell them cheaply to your government. You can't ask the government to sell you cheap, or to do that they have to print more money or force you to pay more taxes, do you like that?

Wage increases can temporarily reduce inflationary pressures, but in the long run, if the supply and demand problem is not resolved, wage increases will make inflation worse. That is why the government is so hesitant about increasing wages because they know the consequences of doing so.

The question is ironic because rising wages is inflation to some definitions of this measure.    I would argue an expansion of the monetary base is the inflation at origin and only later do we track various prices as gauges of that influence, which is variable according to supply and demand across those markets.    Prices actually fall if money supply is limited and that would include wages I think, so I think even a min wage is aligned to inflation unfair as that might be.  The cost of labor is a price to be measured, its part of the costs behind a retail price etc.

An increase in the minimum wage should be a last resort for mitigating the effects of inflation on citizens. Raising minimum wages can also impact the costs faced by industries. It's crucial to address the underlying causes of rising living costs, such as by controlling inflation, subsidizing essential food items, and reducing taxes where feasible. Once minimum wages are increased, they are rarely reduced, so any decision to raise them should be made with caution and thorough consideration.

The prices of goods are actually the main thing that needs to be solved in this country, people can no longer afford the little things they used to buy without stress few years back, increasing the minimum wage will not change the economic situation of Nigeria because things are still expensive, how can people utilize their money wisely when the prices of everything has trippled, I'll keep saying this over and over again the major solution first is to reduce the price of fuel

The best solution for the government is to increase the minimum wage to adjust the prices of goods and services which are increasing due to the impact of global inflation, even though it is not the right decision to overcome the impact of inflation, this solution is the last option to realize people's desire to get a minimum wage that is in line with their income needs, the government must help increasing local products and micro businesses to stabilize market prices.

The government must regulate/revise new regulations to increase local production in the domestic market, also provide subsidies and provide other services to develop local companies and micro businesses to develop in the domestic market, this effort will help the government to open large job opportunities, this step will avoid impact of global inflation.

Yes, bro, at least with the increase in the minimum wage, they can buy their daily necessities because inflation continues to rise high. When inflation is high and the minimum wage is still the same before inflation rises, they will have difficulty buying daily necessities because their income is lower. with the price of goods, over time it will make them miserable with inflation continuing to rise but their wages are still the same, for me the increase in the minimum wage indirectly helps them to meet their daily needs even though it is not a solution to lowering the inflation rate, at least they that has been helped by the increase in wages, it is normal for them to feel the increase in the minimum wage.