Topic: Is increase in minimum wage a good method to fight inflation? - page 4. (Read 2003 times)

Basically, it will help the people to cope up with the increase on the price of marketable goods. Analogy is that;

If you're an average employee perhaps you are earning $15 on third world countries (at my area at least). Your usual daily expenses at lower inflation rate is around $12.
When inflation became more evident your daily expenses became $15, that leaves you nothing to save. Increasing the minimum wage will logically give people a margin. However it won't be sustainable to the economy of a country if GDP won't increase as well. To cut it short, it will be a whole lot of process and the thing we're discussing won't stop the struggle but will just temporarily aid it under conditions.

If we look at the worst current economy, the impact of inflation causes the prices of goods and services to become more expensive even without an increase in the minimum wage, but if we assess the positive side, an increase in the minimum can improve the economy of workers and this impact can reduce the poverty rate. But the government must prepare appropriate steps to balance wage increases and strategies to defend the economy from inflation, perhaps new policy support from the government is needed to provide subsidies to industry and society to increase productivity of local goods at normal prices and society will prioritize local products, this step is to prevent the negative impact of increasing the minimum wage and I think the government can realize improving people's welfare.

Yes, like that because the journey of economic growth is an aspect of business continuity, while raising wages has not been able to fully overcome inflation, with inflation there will be a push that is difficult to overcome, in fixing this it is necessary to set a maximum price, as well as carry out supervision and distribution of goods, in this effort there needs to be cooperation in every circle by increasing the goods and services that are very necessary, for the long term so that the is gradually better, even so it is necessary to implement optimally in the field and the need to take steps that reduce the company's production costs by reducing taxes on goods, so that it can help restore.

Inflation will never go away under the current way cash is set up.

You can raise salaries won't stop inflation.

The feds can raise interest rates until they crash and burn the economy  and after a few years of no or low inflation inflation will pick itself back up again.

You want to stop inflation you need to fix the issues.

divide the world equally in 2024

we each get

 1/3 of an acre of fresh water
 4 acres of land
12 acres of ocean

when I was a kid  1964 we would have got

1 acre of fresh water
12 acres of land
36 acres of ocean

So what grows people
what stays put the size of the earth

that means resources are more expensive
that means inflation.

We could do a 3 year no babies anywhere on the planet which would lower population (we as humans can not agree to that)
we could make space travel work giving abundant resources and maybe each person gets.

10 acres of fresh water
120 acres of land
360 acres of ocean

to get here we would need to drop the population 30x to 270 million
or to find a way to colonize Saturn which is really big.


the other fixes are not fixes.


here is why inflation exists.

look at link

https://www.worldometers.info/


 world pop 8,124,488,660 and growing

births this year 76,844,683 and growing
deaths this year 34,771,363 and growing slower than births.

42,073,422 Net population growth this year

this is the one true cause of inflation for us on this world


people and cash grow while the worlds resources stay the same

Forcing up the cost of labor isnt a solution by itself, it should only be done to avoid abuse with exploitive work practices perhaps.    Minimum wage can actually create a problem by taking away work from those who otherwise would not have that basic job in their lives.  People who are restricted in their movements or some other condition needing care for example can still work but not always to a full wage capacity.  Its hard to explain those details in text but sometimes the wages would be low as the job is a form of supervised care perhaps, etc.

  Sometimes the detail is hard work out in a law, often they will exclude business with 50 employees or less but not always.    I agree often workers are exploited with low wages so its a hard discussion to have.  In the majority of business it cannot be forced into making employees far better off via this method.   I prefer when some kind of equity share is possible to give part of profits and involve workers in the overall profitable interests of a company, again not simple to do.   What tends to happen with a forced restriction is the work exported elsewhere maybe internationally to a cheaper work force and is so far off the ideal that was ever intended by the law.

Increasing the minimum wage has always been a short-term solution, and this move has only made things worse. The greatest tool in combating inflation is to increase production and reduce external dependency. This is very difficult to achieve in developing or underdeveloped countries. In other words, many countries continue their economies in a foreign-dependent manner.

Increasing the minimum wage means increasing production costs. When production costs increase, the price of goods in the market increases, and therefore inflation increases. Since production costs increase, imported goods start to be purchased. As a result, your domestic production suffers and you become dependent on foreign countries because you are purchasing imported goods.

Good point, if the government can realize the use of natural resources, increase production and stop importing then the country will be prosperous without worrying about the impact of global inflation, but the fact is that we regret the government's attitude of not implementing regulations that favor the welfare of the community and they only seek personal profit from abuse of office power.

The government may increase the minimum wage to adjust to the impact of inflation, but they are not making maximum efforts to increase economic growth because statistics show that the poor population is increasing and the economic status is becoming unstable because they prioritize the use of imported goods rather than local products.

I agree that raising the minimum wage is a good step, but it is only a short-term solution. The priority should be to create a more stable economy. Where the currency must be stronger and the production of goods and services in the country must also increase. Because by being able to produce and meet domestic needs, it is clear that this can reduce dependence on foreign products and industries. Which in turn will lead to domestic economic growth. And therefore, although raising the minimum wage may be a solution to the existing problems, it must be remembered that it is only a temporary solution not for the long term, the long strategy must be to strengthen the domestic economy and reduce imports.

Furthermore, other efforts must be made such as investing in education and workforce training. When there is a skilled and educated workforce, this will increase the level of productivity and creativity which ultimately drives economic growth.

Actually, the price of things are bad right now in Nigeria and that's because there are many factors, like the dollar rate is no longer fixed but now open market and because we depend solely on importation, things are now been considered in dollar instead of the Naira. The transportation system isn't no longer favorable because of increase in pms and the government have no choice but to increase the minimum wage for Nigerians to be able to breathe.

However, for this to be successful, they need to manage inflation very well, without this then it's going to be like they are making things worse, there will be more money in circulation and that will trigger inflation even more. They need to also regulate the price of goods, the average Nigerian marketer are opportunist, once the minimum wage is increase, every other things will increase.

There's always that imbalanced of things and this is why you cant really blame up someone on why they do lost their trust into the government just because they cant really be able to balance everything.
Well, there's no such thing about perfect government but at least they should really be finding up some ways that they could be able to make things at little bit balance or on the time that they will really be making up some considerations to see their citizens situation in regarding about basic wage salary in seeing on the commodity prices on which this do really make things harder specially on surviving on day to day basis.
We do know that not all people would really be that be rich or something that financially capable for them to buy all of their needs or simply being rich.

For those who are on average to poverty line then it would really be just that needs up for you to have that another source of income or sideline if you dont really like on sleeping on the streets because of
high price of needs or commodities and services. Inflation becomes even more worst as the years passing by on which its just really that right on finding for another alternative source
and it would really be just that a common initiative to be done by someone whose really that wanting to have such survival.

I'm really surprised that most people are excited about the increment of minimum wage, I think their priorities are misplaced, it's actually worse than when it was way lower because the prices of everything is times 4 of what it used to be, how will you survive with 70000 naira for a month.. What's the solution to all these if you ask me?? It's very simple,  the price of fuel should be reduced first before considering the minimum wage because if the price of petrol keeps increasing nothing is going to change

Increasing minimum wage as it regards to inflation is good but should be taken only as a palliative measure to cushion the effects of inflation but the real thing to do should be looking at economic stabilization such as strengthening of your currency against the dollar and encouraging local production of goods and services in doing so foreign import rate will reduce and it will have it impact on the overall economic growth and stability

I have already posted here - raise of minimum wage wont do anything, as employer will have to pay a higher social tax. Each worker will become more expensive for the company. It isnt necessary to be a genius to figure out that those extra expenses will be added to product and service price. Which is - inflation again. That is as if people would fight fire by burning everything around. Increase of minimum wage is no better than printing new money. It is called "we have a problem, but let others solve it".

Talking about greater pay to tackle inflation misses the point. A superficial repair. No doubt, any stimulus helps struggling people right now. But long-term? Not enough. Think deeper: the government demands higher wages. But that cost is passed on. Companies boost prices to survive. Inflation is complex and ever-changing. The paycheck grows, yet what you buy stays the same or worse

This wage-inflation back-and-forth? That spiral is fragile. Businesses can only charge so much before customers leave. Employees may only expect so much before firms lay off. The system breaks down, not just numbers. Not blaming anyone. A holistic view is needed. We must first discuss why prices keep growing and salaries aren't keeping up, then find solutions to make the economy work for everyone

What might also happened in that case is the company will force to layoff their workers to compensate those request. That's why people should not be so aggressive for getting their demands since there are companies that can't able to give an immediate raise especially if they are surviving in harsh economic state on their country.

That's why people nowadays should find alternative solution on their droughts and create some opportunities on their free time since there are lot of things that they can do especially that everything is digitalized and they can work or either sell some products online to get an extra funds for them to sustain their daily needs or get some extra funds for emergency purposes.

If you're the type of guy that's stagnant and relies solely your living to your salary, it does help. But for how long with that increase you'll have to wait again until you get another one? The inflation isn't going to stop anytime soon and before it's like every year we get to see inflation rate increases but this time is crazier, we get to see reports of it monthly and they're increasing like 1% monthly.
That's actually a lot if it's going to be merged and added for the entire year so, with your possible 5%-10% of increase as that depends on the capacity of the company and the inflation goes up depending as well on your economy's performance but let's make it into the crazy situation before but now becomes a norm like a 12% inflation rate where we get that from 1% monthly increase.
It's enough? to say, yes but it's not going to be enough for the upcoming years to come as your salary increase above minimum will be lesser in terms of your purchase power with the goods that are also increasing. Plus all of the expenses, rent/mortgage or any obligation that you're paying monthly. Many of those are going to be expensive as well as there's a domino effect that we get to see when inflation rate increases. Coming from oil, commodities, food, etc. Everything now becomes so expensive that even the food prices will also affect the other things that we consume and use.

You are actually right as your response is like hitting the nail by the head. Whenever there is inflation, workers usually demand increase in minimum wage as if that will solve the problem. What this do in reality is that it makes the economic woes the new normal. By this I mean, the increase in price will become accepted and the increased pay will not be able to compensate for it as price will continue to increase across board living the unemployed and under employed to bear the brunt. The only known solution to inflation is fixing the economy and eliminating the imbalance that lead to it, every other action taken apart from this will just be temporarily cautionary.

Raising the minimum wage can help to tame inflation but it cannot be used alone and unless many more measures are used at the same time it is likely to have the effect of making it worse. The biggest thing that is likely to get inflation under control is raising the central bank interest rate, as this forces borrowers to rein in their spending and rewards savers in an economy. This stops the cycle of cheap credit which can fuel big bubbles over time and sends it into reverse. However economies can also be effected by outside influence that they have less control over - like wars started by other countries (Russia for example) or even things like a worldwide pandemic which can screw up supply chains which take years to straighten out again.

But having that raise would really be something that will really be a notable action if it would really be done by the government on which having that increase is something that somewhat could be able to fight off that inflation or something that would really be that beneficial for most people who are really that getting their monthly salary. Yes, we are living in a world on which economic problems such as this where these kind of raise would really be a saving grace for them but of course its not something that government could really be always something to do on which there would really be those conditions that raise up on their wages is something that could be that easily happen and thats why on the time that inflation is really that creeping out then majority of these workers or wage earners would really be having that overdropped kind of living on the time that their salary isnt already enough for them to spend on. This is a solid condition that describes in our country today that all commodities and primary need prices do keeps on increasing but not the salary that we do able to earn on which this is something that results into disaster.

Raising the minimum wage of workers is not a solution to inflation if nothing is done about inflation.  If the government raise the payment of workers and nothing is done about inflation,  marketers will take it as an advantage to increase of products in the market. It is better to make everything as possible to reduce the level of inflation because when workers minimum wage increases because of inflation it will only benefit only people that are salary earners and those that depend on the little business it will really affect them which they may not even be capable to continue with their  business.

Inflation is a critical problem in a country,  and if their is nothing to be done about it will so much affect the economy that the government won't be able to pay the allowance of workers.