Topic: Is increase in minimum wage a good method to fight inflation? - page 5. (Read 2003 times)

No not really because as the price of commodities rise due to inflation no matter how much money you earn its value would be close to nothing. I remember watching a video where in there is a country and the inflation is so bad that printed money literally have no purchasing power and some of them are weaved into handbags or rags.

So it’s not really the quantity we are looking for but rather the value instead.

Increasing the minimum wage will better the life of civil servants but the challenge is that the same time it will also affect the price in the market, and to me increasing minimum wage is not a good way to fight inflation, the better way to fight inflation is through policies to be able to control the price and in other for the government to be able to control the price is to also be part of the manufacturer, that way there will be competition in the market, that way they can regulate the price better, so minimum wage increase is not a remedy to me there other options affordability is the goal. And there are people in the government that can make this things happen but hell no they don’t care we all just hope for a better world.

I get your point, the whole idea of the increase in minimum wage is to help increase the purchasing powers of the citizens as against a rising cost of goods and services. Inflation is one economic issue that devalues the take home pay of most workers and it's something that must be addressed, for private company, there's a way they can go around it by modifying the salary scale of the workers on the lower level, in a bid to help them balance up a little, since they might not have the resource to upscale everybody's take home.

As one solution, maybe that is true because an increase in the minimum wage can provide convenience for the whole community, but it is much more important how the government can make the prices of necessities more stable. For the record, it is not easy to control goods in the market because there are those who play a role in seeking profit amidst the difficulties experienced by the general public. This is where the government's role is much more effective in controlling because they have accomplices to reach a wider reach.

Imagine that the minimum wage never increases and goods continue to increase in price and the next question is how can people meet their living needs amidst conditions like this? Decreased purchasing power will also have an impact on farmers, because the harvest results will result in the absence of value in the offer to buy agricultural products so that they are used to buy them at cheap prices by distributors.

there are many problem with it just like how economy works in an nutshell try to solve this one problem then other problem arise, as much as I agree with minimum wage increase, the price of goods will just also gonna increase alongside the increase of minimum wage, the additional money that the workers got just gonna get balanced out by the supply and demand, thats usually how it become in the long run.
but I guess government can have other solution to solve this problem but i'm not so sure this problem can be solved easily.

if government can intervene the prices of basic goods, subsidizing the low income household I think it will be more effective but with controlled approach, if not it will also have the same effect as raising minimum wage, the increase of inflation rate.
just like how housing crisis happened across the world where people with average salary could only dream of owning a property, this also need to be intervened by government and in a good way to keep the price low. thats just my 2 cents.

Increasing the minimum wage by its own won't do anything to increase the health of the economy of a country, I am sure of it because it is something we lived here in Venezuela for several years. We went through one of the most savage inflation periods in modern history and yet, all the president and the central bank could do was to increase the wages, which was useless, since the price for good and services also increased. It was one of the darkest times for this country.
A chocolate bar could cost like millions of our local currency and we had to remove about eleven zeroes off our banknotes because the prices of all things were getting ridiculous.

In my opinion, the best way to tackle inflation is to step up production of good an services, make the people of the rural zones to be able to yield as much food as possible, so the prices will find a good balance. Only when the production is high enough, then one should think about increasing the minimum wage, in order to stimulate consumption by the average worker, otherwise inflation will continue to grow and get going.
There is a good reason by the countries of the first world are also called developed countries or industrialized countries, it is because the rate of production of vital good and services in those places is high, so inflation can be easily controlled through mechanism like adjustment to interest rates, instead opting to print more money.

  I think i support your motion, even in my own country it happened like that, mine is even worse because citizens were suffering of this inflation of a thing and government did nothing about it. The only thing government could just say is fake promises. Almost a year now,   even minimum wage have not been announced, they are still deliberating on it.  Despite the fact that minimum wage is not the way out, because is just small population of the citizens that are civil servants. So if their wages are increased, it would only cause more damage to the rest of the people because the demand will be high which make the price to be high as well.


Government increasing minimum wage because of inflation, is like he's only playing with the sense of the citizens. because it solves no problem, it makes it worse.
         what about those that are not civil servants? What provisions does the government has for them?
And also even if this minimum wage is been done, some time, not all the level of the government complies like state and local government don't want to comply with the federal government when it comes to the issues like increments in the wages of the civil servants. Which makes it not to be balance even between the civil servants themselves.

Well as for me, I think increase in minimum wage cannot fight inflation in any way. As we all know: Inflation is simply the continual increase in price of goods and commodities in the market.If there is increase in money supply without checkmating other factors like: High cost of production_ High cost of transportation of goods_ Increase in exportation than importation _High tax Levi on production and importation_ Higher demand and shortage in supply non governmental regulatory agencies to checkmate the prices that things are sold in the market and those deliberately hiding the products and goods that are meant to be displayed in sufficient quantities in the market for consumers e.g. The petrolatum products as the case may be.

an increase in the minimum wage for workers will actually not solve or reduce the level of the inflation problem. In fact, people's purchasing power will become weaker and the purchasing power of money will become less, thus the economy will weaken even if the minimum wage is increased to increase people's purchasing power but it will be difficult to recover. return.

In my view, raising the minimum wage to fight inflation has pros and cons. On one hand, it can improve the standard of living for low-income individuals and contribute to economic growth by increasing purchasing power. On the other hand, it may lead to higher costs for businesses, which in turn can result in price increases for goods and services, ultimately exacerbating inflationary pressures. It is important to consider all aspects of this issue and make decisions based on a comprehensive analysis of the economic situation.

It is not easy to do this and it is not the only solution, the government must also regulate the prices of goods so that they are affordable because if the focus is only on increasing employee wages then there will be many things sacrificed.
Increasing employee wages might be an effort to fight inflation, but it must be realized that not all countries can do this.

Regarding job loss or the lack of job opportunities limited by the company, it is already included in management in minimizing expenses by the company itself.
I don't think it has any influence on the policies created to fight inflation.

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.

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.

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.

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.

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.

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.

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.

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.

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.